According to the CPSC, the top toy hazards include:
The American Academy of Pediatrics has their own list of dangerous toys, including:
Loud Toys and Hearing Loss
In addition to falls, choking hazards, and other dangers from unsafe toys, you should also be on the lookout for loud toys. These toys can pose a danger to your child's hearing.
One of the biggest loud toys may be one that you never hear - your child iPod.
If your child is getting an iPod, iPhone, or other gizmo on which he can listen to music with headphones, you should be aware of the risk to your child's hearing. To be safe, set the maximum volume on your child's iPod to a limit where you can't hear any music when your child has the headphones in his ears. And set a password combination so that your child doesn't reset the maximum volume to a higher limit.
Toy Inspection
And even if your child's toys pass your initial safety inspection, you should regularly check them for broken parts, which can pose a choking hazard.
And make sure that they haven't been recalled.