Baby City has been fined $39,000 after selling cots that didn't meet the required safety standards.
The retailer sold the two cots - the Milano Sleigh and the Milano Phoenix - between October 2014 and October 2015.
A recall for the two cots was issued early in 2016 after testing found snag hazards and cracking in the frames, and the documentation for both was missing important safety information.
"This included the need to place the cot a reasonable distance from power points, and an incomplete warning on the necessary mattress size," said Commerce Commission spokeswoman Antonia Horrocks.
Using the incorrect mattress size increases the risk babies could get their legs stuck, or even climb or fall out of the cot.
"Buying a cot can be a daunting experience for any parent or caregiver. It is extremely important they receive all the information they need to ensure their cots are assembled correctly, maintained adequately and safe for the baby or toddler to use," Ms Horrocks said.
Contact details for the manufacturer were also lacking.
"Businesses must have the correct procedures in place to ensure their products comply with the appropriate safety standard and that they are routinely tested," said Ms Horrocks.
"This includes retesting to confirm their cots meet the relevant standard every time the manufacturing specifications change or if a problem arises."
Baby City has agreed to undertake more testing and implement new quality control procedures.
The Commerce Commission had not received any reports of injury or harm due to either cot.