Family Dollar Stores, which sold the heaters from September 2012 through December 2012 for $35, is accepting the recalled heaters in exchange for a full refund.
Consumers were advised to unplug the portable heaters, which are about 10 inches wide, 25 inches tall and 9 inches across.
They stand on a white metal casing and have a white plastic top. The heating elements are surrounded by a protective wire cage, the Consumer Product Safety Commission said.
The front section of the top has the brand name Optimus, a power light, a caution light and two dials, one of which is an on/off switch and the other of which selects either 750 watt or 1,500 watt.
The heaters were imported from China by Family Dollar Services Inc., of Matthews, N.C.
Consumers can call 800-547-0359 for information.
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