WASHINGTON — The Consumer Product Safety Commission said Monday that Macy’s Inc. has agreed to pay a $750,000 fine for failing to report that it sold children’s outerwear with drawstrings at the neck over a four-year period.

This story first appeared in the July 12, 2011 issue of WWD. Subscribe Today.

As part of the settlement, the retailer, based in Cincinnati, denied the CPSC staff allegations that it knowingly violated the law.

The clothing included sweatshirts, sweaters and jackets with drawstrings around the neck, which the Consumer Product Safety Improvement Act of 2008 made illegal. The CPSC’s Office of Compliance announced in 2006 that drawstrings at the neck would be regarded as “defective” and a “substantial risk of injury to young children.”

The agency said the clothing was sold at Macy’s, Bloomingdale’s and the now-defunct Robinsons-May stores.

CPSC staff alleged that Macy’s knowingly sold styles from a long list of different apparel brands with drawstrings around the neck after a recall had been negotiated in 2006.

Federal law requires manufacturers, distributors and retailers to report to the CPSC within 24 hours after receiving information “reasonably supporting” that a product could create a hazard, unreasonable risk of serious injury or death or fail to comply with a consumer product safety law, regulation or standard.

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