Toy Companies Pay Penalty for Violation of Lead Paint Standards

Nine companies have agreed to pay $500,000 in penalties for selling or making products aimed at children with lead paint, U.S. regulators said Tuesday.

The products involved include Halloween pails and baskets, jewelry and pens and metal water bottles and pencil pouches, the U.S. Consumer Products Safety Commission said. They were subject to recalls in 2006 and 2007.

All the companies denied knowingly violated the law, which allows only tiny quantities of lead in items for use by children. One company distributed products with a coating that was about 60 percent lead, 1,000 times the allowable percentage, the CPSC said.

The companies involved and the penalties are: Cardinal Distributing Co. Inc., of Baltimore, $100,000; Dollar General Corp. (NYSE:DG), of Goodlettsville, Tenn., $100,000; Family Dollar Stores Inc. (NYSE:FDO), of Matthews, N.C., $75,000; Hobby Lobby Stores Inc., of Oklahoma City, $50,000; First Learning Company Ltd., of Hong Kong, $50,000; Michaels Stores Inc., of Irving, Texas $45,000; A&A Global Industries Inc., of Cockeysville, Md., $40,000; Raymond Geddes & Co, of Baltimore, $40,000; and Downeast Concepts Inc., of Yarmouth, Maine, $30,000.