Dolls and Idols

I own some dolls, mostly cloth (like Raggedy Ann), but also some fancy porcelain dolls. Recently I've heard that having dolls that look like humans is forbidden by Jewish Law. Is this true?

It is permissible to keep your dolls and to play with them. Most people follow the ruling of the Chochmat Adam, written by Rabbi Avraham Danzig (18^th-19^th centuries). He says that nowadays it is permitted to own an image of a human being. He explains as follows: The whole reason it was forbidden to own an image was so that nobody would suspect the owner of being a "closet" idol worshipper. But since people generally do not worship idols today, there is no longer any cause for suspicion.