US department store retailer Bon Ton Stores has agreed to pay a fine of US$450,000 for failing to tell the US Consumer Product Safety Commission (CSPC) that it was selling children's hooded jackets and sweatshirts with drawstrings through the hood.

Children's outerwear with with drawstrings, including jackets and sweatshirts, pose a strangulation hazard to children - and federal law requires manufacturers, distributors and retailers to tell the CPSC if any items pose such a risk.

Some 800 of the jackets and sweatshirts were sold at Bon-Ton, despite three recalls by US importers of the products in early 2010.

Despite agreeing to the settlement, Bon-Ton denies CPSC allegations that it knowingly violated the law.