Daiso, a huge international retail chain with nine stores on the West Coast, has agreed to pay a $2.05 million fine and to stop importing toys and children's products into the U.S., according to the Consumer Product Safety Commission. The company, which has 3,000 stores around the world, has been accused of importing children's products that violate U.S. laws on lead levels, phthalates and small parts, among other things.

The consent decree prohibits Daiso from importing or entering into commerce in the U.S., directly or indirectly, any toy or other children's product until it meets the requirements in the agreement. In addition, the company must retain an independent product safety coordinator to assist in the creation of a comprehensive product safety program, conduct a product audit of merchandise to determine testing and certification requirements and develop and establish procedures for compliance and reporting.

"This landmark agreement for an injunction sets a precedent for any firm attempting to distribute hazardous products to our nation's children" said CPSC Chairman Inez Tenenbaum. "We are committed to the safety of children's products and we will use the full force of our enforcement powers to prevent the sale of harmful products."

Daiso has conducted business in the U.S. since 2005 and has six stores in the San Francisco area and three around Seattle. Port inspections turned up earlier violations, many of which occurred prior to the enactment of the Consumer Product Safety Improvement Act (CPSIA), which reduced allowable limits of lead and phthalates and increased the CPSC's ability to seek higher penalties.

Daiso withdrew all toys and children's products from its U.S. stores before signing the decree, the CPSC reports. Toys and other items sold at Daiso stores have been subject to earlier recalls, including wooden toys, purses and pencil cases, stuffed animals and rain ponchos.

Our take: This is more evidence that the CPSC has been reinvigorated and that the new leadership at the Commission, plus the new powers under the CPSIA, mean good things for consumers.