Battered American toymaker Mattel is recalling more than 55,000 toys in Canada, the U.S., Britain and Ireland because of excessive levels of lead paint found in the products.

Mattel issued a release Thursday stating that it is recalling Go Diego Go Animal Rescue Boats, part of the Fisher-Price brand. The recall affects about 5,500 toys sold in Canada.

The recall is Mattel's fourth in the last six months and has led the European Union executive to undertake a two-month review of its toy safety rules that is due to be completed next month, reports Reuters.

"There is more work to be done to step up controls. The decision by Mattel to provide advance information to the European Commission and the concerned national authorities is a welcome step in the right direction," EU consumer commissioner Meglena Kuneva said in a statement.

The toy, an orange-and-yellow boat that squirts water, was manufactured in China and sold in the four countries between June and October.

Consumers are being advised to return the toys to Fisher-Price.

On Wednesday, Mattel chairman Robert Eckert said the company has "significantly increased" spot testing and other safety protocols after the recall of more than 20 million products made in China.

"Trust can be earned and can be lost. Building credibility and trust takes time but can be dissolved in an instant," Eckert told hundreds of executives gathered in San Francisco for an annual Business for Social Responsibility conference.

"When my children say: 'Dad, trust me,' I always respond: 'Deeds, not words.' I believe that also applies to business."

California-based Mattel has been at the centre of a toy recall wave, including Barbie doll accessories and toy cars, because of concerns about lead paint and tiny magnets that could be swallowed.

With files from the Associated Press