Christmas wands, toys with button batteries and those with small, high-powered magnets are among items removed from store shelves in a pre-Christmas crackdown.
NSW Fair Trading says investigators visited 975 retailers and one toy supplier to check on 17,019 products to ensure dangerous toys and decorations are taken off shelves before Christmas.
It said 69 products were found to be non-compliant or illegal in the clampdown.
"These included Christmas wands, toys with coin or button batteries and toys containing small, high-powered magnets," NSW Fair Trading said in a statement on Friday.
"There were also five toys found for sale which were subject to a permanent ban. All have been removed from the shelves."
Thirty-nine traders and one supplier were selling non-compliant products, two entities were fined, six received a warning letter and four were subject to further enforcement.
"Inspectors also attended the premises of a supplier who was found to be in possession of a large quantity of banned products and these were seized," NSW Fair Trading said.
People selling non-compliant toys risk fines up to $500,000, while corporations face penalties of up to $10 million.
