The US Consumer Product Safety Commission (CPSC) has announced that Kohl's Department Stores has agreed to pay a civil penalty of $425,000, after allegations that Kohl's knowingly failed to report to CPSC immediately that children's hooded sweatshirts it sold had drawstrings at the neck.

In March 2009, CPSC and the sweatshirts' importer had announced a recall of the products.

In agreeing to the settlement, Kohl's denied CPSC's allegations that it knowingly violated the law.

In 2008, Kohl's paid a $35,000 civil penalty for failing to report drawstrings in children's sweatshirts too.