Health authorities have warned people to stop using Hashmi Surmi Special and Hashmi Khol Aswad eyeliners after three children from the same family in Sydney became sick.
The eyeliner has been found to contain high levels of lead and other dangerous metals.
New South Wales authorities say the eyeliners, manufactured in Pakistan, have been found to contain dangerous levels of lead.
The state's Better Regulation Minister, Matt Kean, says doctors have tested the children and found elevated levels of lead in their blood.
“I am absolutely appalled that cosmetics containing lead are being sold in New South Wales. We all know that products containing lead have serious health impacts on individuals. And that's why we're recalling these products from the shelves immediately."
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Health warning for eyeliners used on babies, children
SBS Punjabi
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The eyeliners are sold in some Indian and Pakistani stores.
In Sydney's west, at least 83 shops have been inspected, with 12 of those found to be selling the eyeliners. They have been immediately removed from shelves.
Professional make-up artist Fareha Ahmad, who specialises in the Indian, Pakistani and Sri Lankan communities, says the eyeliners are very well-known in the communities.
She says they have been used to line the eye of babies and children, a tradition across some countries.
"In Pakistan, when the children are born, it's very traditional for them to get Kajal in their eyes, and the Khol eyeliner, the Kajal, it's normally done on newborns. They think it makes their eyes bigger, (that) it's good for their eyes, so it's really concerning, it's a tradition there."
Ms Ahmad says many people use the eyeliners because of their affordability.
"Smaller salons or the everyday household people would use this Khol in their eyes, because they think it lasts longer and it does the same thing as the higher (price brands). Like, why would they pay, say, $30 versus 30 cents? Yeah, so they prefer the cheaper brand."
However, it has now been revealed through testing that the two eyeliners contain 84 per cent lead.
The tests have found they also contain such dangerous metals as arsenic, chromium and mercury.
The minister, Matt Kean, says the cosmetics have been referred to the Australian Border Force.
"So Fair Trading is working with the Australian Border Force to crack down on this product coming into the country. If companies breach these laws, then there will be significant financial penalties of up to $1.1 million that will apply."
New South Wales Health is urging anyone who has used or has the Hashmi products to stop using them immediately and seek advice from their doctors.
