A Los Angeles-based company, Ms. Bubbles Inc., has agreed to pay a $40,000 civil penalty related to the firm's hooded jackets for children, according to the Consumer Product Safety Commission.
The agency said Wednesday that the company was accused of failing to report to the CPSC immediately that its children's hooded jackets were sold with drawstrings through the hood.
In 2006, the commission announced that children's upper outerwear with drawstrings at the hood or neck would be regarded as defective and a substantial risk of injury to young children.
About 55,000 children's jackets with drawstrings in the hood made by Ms. Bubbles were recalled in January 2009.
Federal law requires manufacturers, retailers and others to report to CPSC within 24 hours after obtaining information reasonably supporting the conclusion that a product contains a defect which could create a substantial product hazard, creates an unreasonable risk of serious injury or death, or violates any consumer product safety rule enforced by the commission.
Ms. Bubbles Inc. agreed to the penalty, but denies CPSC's allegations that it knowingly violated the law.