Toymaker Schylling accused of knowingly selling lead paint-tainted toys; agrees to $200,000 penalty

Toymaker Schylling Associates, which makes classic toys including many with the Curious George and Thomas & Friends brands, was accused of knowingly selling tens of thousands of its products that had lead paint in violation of federal law, the U.S. Consumer Product Safety Commission announced.

Although the company denied it broke any federal laws in agreeing to the settlement, Schylling agreed to pay a $200,000 penalty. The toys were sold in 2001 through 2003 but were not reported to the government, as required by law, until 2007, when they were recalled.

"Manufacturers, importers, distributors and retailers have a legal obligation to ensure that no banned products are introduced into or distributed in the U.S. marketplace, and to inform CPSC as soon as they become aware of information that must be reported under our laws," CPSC Chairman Inez Tenenbaum said in a written statement. "We will continue to penalize companies that do not follow these basic requirements."