The U.S. Consumer Product Safety Commission (CPSC) said eight firms, including Life is Good and Gildan – agreed to pay a total of $320,000 to settle allegations that they failed to report to the CPSC that their children’s hooded sweatshirts or jackets were sold with drawstrings at the hood and neck.

These products, which the firms eventually recalled, pose strangulation hazards that can cause death to children. The settlements have been provisionally accepted.

In February 1996, CPSC issued drawstring guidelines to help prevent children from strangling or getting entangled on the neck and waist drawstrings in upper outerwear, such as jackets and sweatshirts. In May 2006, CPSC’s Office of Compliance informed manufacturers and retailers that children’s upper outerwear with drawstrings at the hood or neck is defective and presents a substantial risk of injury to young children.

Federal law requires manufacturers, distributors, and retailers to report to CPSC within 24 hours of receiving such a warning that a product contains a defect which could create a substantial risk of injury to the public, presents an unreasonable risk of serious injury or death, or violates a federal safety standard.

In agreeing to settle the matters, the firms deny CPSC's allegations that they knowingly violated the law.

In separate agreements, Gildan agreed to pay a civil penalty of $35,000 and Life is Good agreed to pay $50,000.