The Consumer Product Safety Commission is warning consumers to immediately stop using the "My Bouncer Little Castle" due to the risk of entrapment and strangulation.
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A four-year-old boy died after he was found with the hoop of the bounce house around his neck.
There is also a second report of a child who became entrapped in the hoop.
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The bounce houses have a yellow hoop attached to a green pillar inside the main bounce house. The hoops were tested and failed to meet the ASTM voluntary standard intended to reduce the risk of accidental head or neck entrapment in inflatable play devices, CPSC said.
The bounce houses measure 88 inches long, 118 inches wide and 72 inches high, and sells for between $100 to $200, according tot he safety commission.
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The "My Bouncer Little Castle" has been sold since 2013 through multiple retailers, including Amazon.com, eBay.com, Sears.com.