Daiso to pay $2 million fine, stop selling kids products after breaking federal laws

Daiso, a huge Japanese-owned retail chain with some 3,000 stores worldwide,has been accused of repeatedly violating federal safety laws while importing toys and other children's goods from China and Vietnam. The company has agreed to pay a $2 million penalty and, in an extraordinary move, was forbidden from future commerce of children's products until the company can demonstrate it can comply with U.S. laws.

The U.S. Consumer Product Safety Commission announced the action against Daiso Holding USA Inc., Daiso Seattle LLC, of Seattle, Wash. and Daiso California LLC, of Hayward, Calif. today. The company was accused of violating laws governing the import and sale of toys with high levels of lead, lead paint and phthalates, as well as having toy parts too small for products meant for children younger than three years old, and for failing to have required warning labels.