Anti-smoking groups are furious after finding replica cigarettes are being sold over the counter to young children from the Two Dollar Shop franchise stores.
The mock cigarettes resemble the real thing, and emit a white smoke-like substance when blown into.
Action on Smoking and Health chairman Murray Laugesen is concerned that playing with replica cigarettes may encourage children to smoke.
Dr Laugesen wants the government to ban the sale of replica cigarettes.
The cigarettes are made in China.
Two Dollar Shop franchises ONE News spoke to say the toys are most popular with 10- and 11-year-olds.
That doesn't impress David Russell of the Consumers' Institute.
"That's when kids, traditionally have had their first cigarette... you know, it's behind the bike shed stuff and here it is promoting it as a cool, smart thing to do to smoke cigarettes.
But Two Dollar Shop retail system franchisor Brian Salmon says it is misleading to take seriously an item from a joke range of products.
He won't comment on whether the franchise will continue to stock the cigarettes.
At least one shop has already cleared its shelves.
Two Dollar Shop head office said the replicas don't promote smoking, are just meant as a joke and that children have enough sense to tell what's real and what's not.
That's not good enough for anti-smoking lobbyists such as Green Party MP Sue Kedgley.
"I want the Two Dollar Shop to withdraw these, every single one of them, and if they don't I think the Minister of Health should intervene," Kedgley told ONE News.
