The retailers agreed to pay $454,000 in civil penalties, The Los Angeles Times reported Friday.
"Our enforcement action will serve as a reminder to companies that they have a responsibility to make sure that children aren't exposed to harmful chemicals from their toys," state deputy attorney general Harrison Pollak said.
The lawsuit was filed two years ago after a rash of toy recalls, the newspaper said.
In the settlement, Target is scheduled to pay $210,000, Toys R Us $175,000 and Kmart $69,000.
Copyright 2009 by United Press International.
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