WASHINGTON (Reuters) - Toymaker Henry Gordy International Inc has agreed to pay a civil penalty of $1.1 million over a dart gun set linked to three deaths, the Consumer Product Safety Commission (CPSC) said on Friday.
The commission has provisionally accepted the settlement with the Plainfield, New Jersey, company, the CPSC said in a statement.
"In agreeing to the settlement, Henry Gordy denies CPSC staff allegations as to the existence of a defect or that it knowingly violated the law," the statement said.
CPSC staff have alleged that Henry Gordy knew around May 2006 that its Auto Fire Target Set was defective because the soft plastic toy dart could pose a choke hazard. However, the company failed to report the defect, the agency said.
CPSC staff have also alleged that Henry Gordy "made a material misrepresentation" during its investigation in 2009 by not reporting all the information it had.
The CPSC and Family Dollar Stores Inc announced the recall of about 1.8 million of the sets in May 2010 because Henry Gordy refused to conduct the recall, the CPSC statement said.
"By that time, there were three deaths associated with the target set," the agency said.
Auto Fire Target Sets were sold exclusively by Family Dollar between September 2005 and January 2009 for about $1.50 each. Each set came with a toy gun, darts and a small target.
(Reporting by Ian Simpson; Editing by Jerry Norton)