The fringes attach to the top of crib railings.
Though neither Health Canada nor the company has received reports of incidents involving the fringes, the federal department says the narrow strip connecting individual fabric triangles in the fringe could strangle young children.
They say about 300 packages of the fringes were sold in Canada since January 2007.
People who purchased the fringes should remove them from cribs and contact the company about getting a refund.
Health Canada recommends parents keep babies' cribs free of pillows, plush toys, bumper pads and other soft items because they pose a strangulation risk.