WASHINGTON (AP) -- The Bon-Ton Stores Inc. has agreed to pay a $450,000 penalty for failing to report that some of its children's hooded jackets and sweatshirts were sold with drawstrings through the hood, the U.S. Consumer Product Safety Commission said Friday.
The consumer protection commission alleges that the retailer knowingly failed to report the information immediately to regulators as required by federal law.
In agreeing to the settlement, Bon-Ton denies CPSC staff allegations that it knowingly violated the law.
Children's upper outerwear with drawstrings, including jackets and sweatshirts, pose a strangulation hazard to children. Federal law requires manufacturers, distributors and retailers to report to the commission within 24 hours if they find that a product poses a safety risk. Federal law also bars selling products that have been subject to a recall.
The commission and three U.S. importers announced recalls of children's jackets and sweatshirts with drawstrings through the hood on Feb. 18, March 10 and May 27 of 2010. Bon-Ton was a retailer of about 800 total jackets and sweatshirts in all three recalls.
Shares of the York, Pa.-based department store chain fell 8 cents to $10.82 in midday trading.