Starbucks Recalls China-Made Mugs

Starbucks (SBUX) announced Thursday it's cooperating with federal regulators by recalling 167,000 coffee mugs imported from China because they pose a "minor burn hazard" to consumers when filled with hot liquid.

The java giant said it has received 23 reports from U.S. consumers who purchased the Starbucks Fusion Coffee Mug and said the handle broke off it when it was filled with coffee. Nine of those consumers reported minor burns as a result of the spill.

"Consumers should stop using recalled products immediately unless otherwise instructed," said the U.S. Consumer Product Safety Commission.

The mugs are white and have a black plastic handle and a stainless steel base. Starbucks is offering customers a refund for returning the defective mugs.

Shares of Starbucks are down 36% for 2007 amid signs that customer traffic is slowing in its U.S. locations. The news of the problem cups comes as U.S. consumers have become wary of goods imported from China because of a series of recalls. Mattel (MAT), for instance, had to recall China-made toys that contained toxic paint.

The warning is also reminiscent of a well-known product liability lawsuit against McDonald's (MCD). In that case, a jury awarded $2.9 million to a woman who burned herself with hot coffee she bought at the fast food chain in 1992. The suit was widely criticized as an example of a frivolous lawsuit.

Shares of Starbucks were down 10 cents, or 0.4%, to $22.55.