The new law sets fines as high as $700 for retailers who knowingly sell cosmetics containing mercury, The Minneapolis Star-Tribune reported Friday.

In addition to penalties for retailers, the new law provides fines that could reach $10,000 for manufacturers who fail to disclose mercury on product labels.

The sponsor of the mercury ban, state Sen. John Marty of Roseville, says the chemical causes neurological damage to humans even when it is used in small quantities.

Federal law allows eye products to contain up to 65 parts per million of mercury.

Chief scientist John Bailey of the Personal Care Products Council in Washington says most cosmetic manufacturers have phased out the use of mercury but it is still added legally to some eye products as a preservative and germ-killer.

Bailey says the exposure a person would get from a product used in small qualities around the eyes would not cause a problem.