According to the Associated Press, Wal-Mart has reached a settlement with the Environmental Protection Agency after violating the Clean Air Act by selling cans of silly string with a banned ozone-depleting substance. The EPA is fining Wal-Mart $199,000 for the violation.

This is just more evidence that Wal-Mart's basic business model isn't good for the environment. Sure, they can sell lots of eco-friendly or "eco-friendly" products, but keeping prices down means cutting corners, ignoring regulations, or pushing manufacturing to places that don't have regulations. Wal-Mart doesn't know why the banned substance was in the cans, but if they paid half as much attention to going green as they did to cutting costs they probably would.

Here's the article the AP via Forbes:

Wal-Mart and EPA reach settlement on violations

ATLANTA -The Environmental Protection Agency said Thursday it and Wal-Mart Stores Inc. have reached a settlement over alleged violations of the Clear Air Act, which prohibits the sale or distribution of nonessential products containing ozone-depleting substances.

Wal-Mart (nyse: WMT - news - people ) will pay $199,000 in penalties under the settlement.

According to the agency, EPA investigators bought cans of a party string product called "Glow-in-the-Dark Looney String" from Wal-Mart stores between November 2005 and January 2006, and results of an analysis showed the products contained a banned ozone-depleting substance.

Wal-Mart violated the Clean Air Act by distributing and selling the product, according to the EPA.

The EPA said Wal-Mart has taken action to investigate the cause of the violation, meet compliance and ensure that violations do not happen again.

Greg Rossiter, a representative for Wal-Mart of Bentonville, Ark., said once notified by the EPA, Wal-Mart inspected its inventory and conducted a full review of other party string products to make certain that no other similar items being sold contained the banned substance.

"Product safety for Wal-Mart customers is our top priority," Rossiter said.

Rossiter said Wal-Mart is no longer conducting business with the unnamed supplier.

Shares of Wal-Mart slipped 94 cents to $53.63 in afternoon trading.