The Warehouse retail chain won't face any action from the Commerce Commission after a Dunedin boy was severely burned when his pyjamas caught fire.
The five-year-old boy, Callum Williams-Legg, is in Christchurch Hospital with chest, stomach, left arm and left thigh burns.
He is having skin grafts but it is hoped hemight be able to go home next week.
The Commerce Commission launched an investigation to see if The Warehouse's Pjays brand pyjamas were to blame after being ignited by a gas fire but have now decided not to pursue it further.
"We got the pyjamas tested independently and they complied with the product safety standard in regards to flammability and labelling and on that basis we've closed our investigation," a spokeswoman told NZPA today.
The Warehouse denied the pyjamas were to blame and did not pull the range from the shelves.
Consumer Affairs Minister Judith Tizard said parents and caregivers had to be careful and keep children at least a metre away from fires and heaters.
"I feel very sad that this family have had such a distressing time, but this unfortunate incident is a reminder that all fabrics, however well designed, will eventually burn if they are exposed to flames or a direct heat source," said Ms Tizard.
She said product safety standards could not completely remove the risks of children's pyjamas catching fire.