Dozens of nightwear styles have been recalled by Big W after it was caught selling children's nightwear with a high fire danger labeled as low fire danger. The recall happened after the Australian Competition and Consumer Commission (ACCC) did a flammability testing, but the regulator says Big W should have conducted its own test to find out the problem or it should have been conducted by the manufacturers, Vinetex.

According to ACCC Vinetex and Big W should have got alerted by the test reports they might have got before the ACCC's investigation.

ACCC deputy chair Peter Kell said, "The ACCC enforces a mandatory standard for the labelling of children's nightwear. It is designed to reduce the risk of burns injuries to children by providing specific information on the fire hazard." Woolworths would pay $200,000 to the Sydney Children's Hospital at Randwick and $200,000 would be paid for research into the mandatory safety standard for compensating for the damage.

A compliance program for improved controls and procedures would be established by Vinetex.