Low-cost chain 123 Mart is facing 28 charges relating to safety standards for children's toys and clothing.
The Commerce Commission alleges 23 of its toys did not meet mandatory safety standards and posed a choking hazard.
One of the toys at the centre of the charges (supplied)
Another charge related to children's nightwear which allegedly didn't have fire danger labels.
The final four charges allege 123 Mart failed to attach care, country of origin and fibre content labelling.
Butterfly on a stick (supplied)
123 Mart has pleaded not guilty to all the charges and has been approached for comment.
The company has withdrawn all the toys and clothing from sale and the commission is advising against using the products.
Five of the toys are subject to a product safety recall, which advises the items be destroyed or returned to a 123 Mart store.
Another toy 123 Mart sold (supplied)
123 Mart operates 59 retail stores throughout New Zealand specialising in low-cost consumer products including toys, costumes and cosmetics.
It started operating in New Zealand in 1995 and has shops under four different brands: 123 Mart, Dollar Store 123, King Dollar Store and Max!Out.