The lawsuit was filed in November by California's attorney general, the Associated Press reported.
North Hollywood GIB LLC also agreed to pay $600,000 in fines and penalties for failing to alert consumers and hair stylists that its products may contain cancer-causing chemicals, and will have all its products tested for toxic substances at a state-approved lab.
The company will also supply salons with a pamphlet outlining recommended safety precautions, the AP reported.
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