Nestle USA said Wednesday it was voluntarily removing its newest product from store shelves after officials in at least three states said they were worried children could choke on it, the candy company said Wednesday.
The chocolate-covered toy, Nestle Magic, meets all safety standards, but there were legal problems with food-toy combinations, the company said.
"The absence of a final resolution of this legal issue has created an unfavorable environment to market the product," said Frank Arthofer, president of the company's confections division.
Nestle Magic featured Disney figures encased in chocolate-covered plastic balls. Federal health officials said the candy appeared to be safe because the toy inside was too big to choke someone.
But critics felt competitors would flood the market with candies that were a threat.
"Nestle showed itself to be a responsible corporate citizen by agreeing to remove the product from the shelves," New York Attorney General Dennis C. Vacco said.
In July, the U.S. Food and Drug Administration told Nestle that the candy may be a "technical violation" of the federal Food, Drug and Cosmetic Act, which prohibits embedding non-food items in confections.
Nestle has received more than 3,300 consumer inquiries regarding Nestle Magic, the company said. To date, 12 consumers reported possible safety-related complaints.