1) They are cheap and most are not suitable for children under 3 but if a kid sees a toy they are going to want it regardless.
2) My sisters spaniel ate a small soft toy from a well known fast food chain. It blocked its insides which resulted in an operation to remove part of her intestines. The dog then caught an infection and had to be put to sleep. Very costly and emotional for my sis, all for a piece of crap from a kids meal.