Trading Standards seized over 230 fake dolls between July and last month, which it says posed choking and chemical hazards.
Residents are advised to buy only from reputable retailers, check for official branding, and report unsafe toys to Trading Standards.
Businesses are urged to source stock from legitimate suppliers and keep full records, as selling counterfeit toys is a criminal offence.
Labubu creator, Pop Mart, has reported a near 400% net profit so far this year.
Trading Standards officers advise Sutton residents to:
Buy from reputable retailers, avoid buying from unlicensed street sellers or unverified online sources, check for official branding as genuine Labubu dolls have a holograph sticker and a scannable QR code.
Buyers should also report unsafe toys and if you believe you have bought a dangerous toy, stop children from playing with it immediately and report it to Trading Standards via the Citizens Advice Consumer Service at 0800 144 8848.
For free business guidance, visit www.businesscompanion.info or contact your borough’s Trading Standards Team.