US retailer Nordstrom has agreed to pay a $60,000 penalty after failing to report to the US Consumer Product Safety Commission (CPSC) that it sold children's hooded jackets and sweaters with drawstrings at the hood and neck.

The products, which the firm eventually recalled, pose a strangulation hazard that can cause death to children, the CPSC said in a statement.

In agreeing to settle the matter, Nordstrom denied CPSC's allegations that it knowingly violated the law.

The settlement has been provisionally accepted by the commission.

CPSC alleged that Nordstrom "failed to report to the government in a timely manner" that drawstring jackets and sweaters were sold by the firm.

Nordstrom sold about 2,400 drawstring jackets and sweaters in the US between November 2007 and December 2007.

CPSC and Nordstrom announced a recall of the products in February and March 2008.