Toy guns deemed too realistic.
Joe Raedle—Getty Images
By Tom Huddleston, Jr. / Fortune
August 3, 2015

Some of the world’s top retailers have agreed to pay more than $300,000 to settle an investigation by New York State regulators into alleged sales of banned toy guns.

Walmart and Amazon headline the group of retailers that agreed to settle the probe in an agreement to be announced on Monday by state Attorney General Eric Schneiderman, according to Bloomberg. Those companies — along with Sears Holdings’ Kmart and Sears store brands, as well as California-based company ACTA — had been under investigation after allegedly selling toy guns that were prohibited under state law for being too realistic to New York residents who bought the products online.

Schneiderman’s office sent the five retailers cease and desist letters in December after the state’s investigation turned up evidence of online sales of banned toy guns online and, in one case, in a suburban Rochester Kmart store. In New York, it is illegal to sell toy guns that look too realistic, including those in colors such as black, blue, silver, or aluminum, unless they also have one-inch-wide orange stripes on both sides and on front of the toy’s barrel.

According to Bloomberg, the retailers sold more than 6,400 banned toy guns in New York between 2012 and December. Walmart will pay the bulk of the fine — $225,000 — because the recent probe found that the company violated the terms of an earlier agreement with the state, in 2003, when the company was found to be selling prohibited toy guns.

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