Laboratory testing of seven fluffy toys and keyrings sold at NSW market stalls and by online retailers found all contained real animal fur despite some being marketed as fake, ABC Investigations reports. Testing identified rabbit, fox and dog fur — dog hair imports have been banned in Australia since 2004. One keyring sold online for $2.61 as "soft fake fur" contained material consistent with dog hair.

The products, some dyed to obscure their origin, were not covered by mandatory labelling laws under Australian Consumer Law. Four Paws, an animal welfare organisation, commissioned UK-based lab Microtex Analysis to conduct the microscopy testing. "Consumers have a right to know what they're buying, and right now our laws and regulations are letting consumers down," said Louise Ward, programs lead for Four Paws.

Some products carried tags marked "I [heart] Ugg Australia" despite not being made by the company. Ugg Australia CEO Lena Fishman said offshore goods were "trading on that name" and often resold internationally as Australian-made. NSW Fair Trading said it was assessing the information to determine what action to take, ABC business (AU) reports.