Target has agreed to pay a $600,000 fine for importing and selling toys with an illegally-high concentration of lead paint on the surface.
The Consumer Product Safety Commission alleges Target knowingly imported and sold the tainted Chinese-made toys between May 2006 and August 2007.
Lead is toxic if ingested and young children are especially vulnerable, and the coatings on some of the toys imported by Target exceeded federal safety limits on lead.
Target recalled more than 500,000 Kool Toyz play sets and other toys for lead paint violations between November 2006 and September 2007.
The Consumer Product Safety Commission says Target did not take proper steps to ensure none of the toys it imported and sold contained lead paint.
But as part of the settlement, Target denies that it knowingly broke the law.
Target did not return calls for comment.