The U.S. Consumer Product Safety Commission announced that Daiso Holding USA Inc., Daiso Seattle LLC, of Seattle, WA, and Daiso California LLC, of Hayward, CA, have agreed to pay a $2.05 million civil penalty and stop importing children's products and toys into the United States.

Due to alleged violations of federal safety laws, the company must now demonstrate to the CPSC that it has sufficient knowledge of and is in compliance with CPSC safety standards and testing requirements.

The consent decree resolves CPSC staff allegations that the company violated federal laws and regulations involving the safety of children's toys and other products. These violations include, but are not limited to, importing, distributing and selling toys with illegal levels of lead content, illegal levels of lead paint and phthalates, small parts on toys intended for children younger than three years old, and products that lack required warning labels.

The decree prohibits Daiso from importing or entering into commerce in the United States, directly or indirectly, any toy or other children's product until it meets the requirements in the consent decree. Further, Daiso must retain an independent product safety coordinator to assist in the creation of a comprehensive product safety program, conduct a product audit of merchandise to determine testing and certification requirements and develop and establish procedures for compliance and reporting.

"This landmark agreement for an injunction sets a precedent for any firm attempting to distribute hazardous products to our nation's children" said CPSC Chairman Inez Tenenbaum. "We are committed to the safety of children's products and we will use the full force of our enforcement powers to prevent the sale of harmful products."

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