The Commerce Commission has issued a warning to baby products company Phil & Teds over teddy bears it provided to children in hospitals.
Between 2010 and early 2015, the company donated about 5000 bears to children at hospitals in Wellington, Waikato and Christchurch.
Testing has revealed the bears posed a potential choking hazard and failed to comply with New Zealand's safety requirements.
As a result, Phil & Teds has advised parents to destroy the bears and stopped supplying them.
The commission said given the steps taken by the company, a warning was appropriate.