While the movie doesn't specifically depict a toy company executive selling broken toys, there's a subplot where a toy store owner, Myron, is selling "Turbo Man" action figures that are poorly made and missing parts. This reflects the commercialism and consumerism critique present in the movie.
The teddy bears filled with glass isn't a scene in Jingle All the Way, but it might be a misremembered detail from a different Christmas movie, or perhaps a creative twist on the theme of consumerism and safety concerns.