(LEGAFI) -- Henry Gordy International, Inc. has been ordered to pay $1.1 million in civil penalties for failing to report a safety hazard and defect in the company’s children’s toy gun dart sets that caused three deaths. The Consumer Product Safety Commission says the company knew about the safety hazard in May 2006, but a recall was not issued until 2010, after the deaths. 

The Henry Gordy settlement resolves CPSC allegations that Henry Gordy knowingly failed to report the safety defect and hazard with the “Auto Fire Target Set” immediately to the CPSC, as required by federal law. The CPSC alleges that Henry Gordy knew on or about May 2006 that the toy target set was defective and could cause harm but failed to report this to the agency. The target set is defective because if a child places the soft, pliable, plastic toy dart into his or her mouth, the toy can be inhaled into the throat and can prevent the child from breathing.

A recall of 1.8 million defective Auto Fire Target Sets was issued in May 2010 by Family Dollar Stores, Inc. and the CPSC because Henry Gordy refuse to conduct a recall. By that time there were three deaths associated with the target set. Auto Fire Target Sets were sold exclusively by Family Dollar between September 2005 and January 2009 for about $1.50 each. Each set came with a toy gun; soft, pliable, plastic toy darts and a small target.

Federal law requires manufacturers, distributors and retailers to report to CPSC immediately (within 24 hours) after obtaining information reasonably supporting the conclusion that a product contains a defect which could create a substantial product hazard, creates an unreasonable risk of serious injury or death, or fails to comply with any consumer product safety rule or any other rule, regulation, standard or ban enforced by CPSC.

Companies also must specifically report to CPSC choking incidents involving small balls, latex balloons, marbles, or toys or games containing these items or other small parts. Companies that receive information about children choking on any of these items and, as a result, dying, suffering serious injury, ceasing breathing for any length of time or being treated by a medical professional must report this information to CPSC immediately.

In agreeing to the settlement, Henry Gordy denies CPSC staff allegations as to the existence of a defect or that it knowingly violated the law.