WASHINGTON, D.C. – The U.S. Consumer Product Safety Commission (CPSC) announced today that eight firms have agreed to pay a total of $320,000 to settle allegations that the firms failed to report to the CPSC, as required by federal law, that their children’s hooded sweatshirts or jackets were sold with drawstrings at the hood and neck. These products, which the firms eventually recalled, pose strangulation hazards that can cause death to children. The settlements have been provisionally accepted.

The firms paying the penalties are (all Agreement links are PDF):

• Life is Good Inc. (Recall | Agreement)
  
  
• True Religion Apparel Inc. (Recall | Agreement)
  
  
• The Cayre Group Ltd. (Recall | Agreement)
  
  
• DollarDays International, LLC (Recall | Agreement)
  
  
• Kohl's Department Stores Inc. (Recall | Agreement)
  
  
• Seena International Inc. (Recall | Agreement)
  
  
• Neiman Marcus Group Inc (Recall | Agreement)
  
  
• Gildan Activewear SRL (Recall | Agreement)

In February 1996, CPSC issued drawstring guidelines (pdf) to help prevent children from strangling or getting entangled on the neck and waist drawstrings in upper outerwear, such as jackets and sweatshirts. In May 2006, CPSC’s Office of Compliance informed manufacturers and retailers (pdf) that children’s upper outerwear with drawstrings at the hood or neck is defective and presents a substantial risk of injury to young children.Federal law requires manufacturers, distributors, and retailers to report to CPSC immediately (within 24 hours) after obtaining information reasonably supporting the conclusion that a product contains a defect which could create a substantial risk of injury to the public, presents an unreasonable risk of serious injury or death, or violates a federal safety standard.

In agreeing to settle the matters, the firms deny CPSC's allegations that they knowingly violated the law.