Mattel Inc. is recalling 2.4 million Polly Pocket dolls and accessories because tiny magnets inside the toys can be swallowed by young children, the Consumer Produce Safety Commission said Tuesday.

The commission said it was aware of 170 reports of the small magnets coming out of the toys, with three children suffering serious injuries after they swallowed them. When more than one magnet is swallowed, the magnets can attract each other and cause intestinal perforation, infection or blockage, which can be fatal.

The company also said it is recalling an additional 2 million playsets sold worldwide.

The commission said the recalled play sets were sold for $15 to $30 at discount department stores and toy stores from May 2003 through September 2006.

Standard & Poors Equity Research on Tuesday downgraded Mattel, citing the litigation issues as well as concerns the company may have trouble keeping up with demand of the popular Tickle Me Elmo doll.

Shares in El Segundo-based Mattel were down 6 cents to 23.26 early Tuesday.