Published: Jul 11, 2011 9:09 PM EDT
Updated: Jul 11, 2011 8:10 PM EDT

WASHINGTON - Macy's department store chain will pay a $750,000 penalty for failing to report it had sold children's outerwear that had been recalled because it had drawstrings. Such garments pose strangulation and entanglement hazards.

The U.S. Consumer Product Safety Commission announced Monday that the Cincinnati-based retailer agreed to pay the civil penalty. Macy's denied CPSC allegations that it knowingly violated the law.

The commission alleged that Macy's failed to immediately report it had sold children's sweatshirts, sweaters and jackets with drawstrings at the neck between 2006 and 2010. The clothing was also sold at Macy's-owned stores including Bloomingdale's and Robinsons-May. The agency said Macy's sold some garments after a recall had been issued.

The commission received 28 reports of children who died since 1985 when drawstrings became entangled with an object.

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