Dulux is recalling more than 100,000 toy dogs distributed in New Zealand and Australia after an investigation found they are a choking hazard.
The toy dog was given to customers who bought either a 10 litre pail or two four litre pails of paint as part of the Dulux 'Jelly Beans and me' promotion.
A Commerce Commission investigation found the toy could pose a choking hazard to young children as some of its fur can come away when pulled, sucked or chewed.
Its investigation was launched after a complaint from a customer whose child chewed some fur off the toy.
Ministry of Consumer Affairs advisor Martin Rushton said anyone who had one of the products should return it as soon as possible to Dulux and make sure it is kept away from small children.
"I'd strongly advise anyone who has one of these toy dogs should put it out of reach of children."
Commerce Commission competition manager Greg Allan said Dulux had tried to comply with New Zealand and Australian toy safety standards before launching the promotion.
However, the toys were in breach of the more stringent toy safety regulations enacted in New Zealand in 2005, he said.
"Because Dulux has been cooperative and responsive in stopping the promotion and recalling the dogs, we will not be prosecuting and will consider only low level enforcement action," Mr Allan said.