The U.S. Consumer Product Safety Commission on Wednesday said that Los Angeles apparel company Ms. Bubbles Inc. has agreed to pay a $40,000 civil penalty related to potentially dangerous hooded jackets for children that it manufactured and sold.

The commission said Ms. Bubbles failed to immediately report to the consumer protection agency that the jackets were sold with drawstrings after federal regulations banned them.

The commission in 1996 issued guidelines designed to prevent children from getting entangled and possibly strangled by hood and neck drawstrings in outerwear. The commission then ruled in 2006 that children’s outerwear with drawstrings at the hood or neck would be regarded as defective and a substantial risk of injury to young children, banning their sale.

Despite the ban, Ms. Bubbles continued to sell the clothing and did not issue a recall for about 55,000 children’s jackets until January 2009, the commission said. The company agreed to the penalty, but denied allegations that it knowingly violated the law.

Located in downtown’s garment district, Ms. Bubbles has been in business for more than 30 years and makes clothing under the Passport, Passport Accessories and Eighty Eight brands, according to the company’s website.

Company executives could not be reached for comment.