TOOWOOMBA has been dubbed the “most racist city in Australia” after a display of nine golliwog dolls appeared at a Terry White Chemist store in Clifford Gardens.

The dolls were placed underneath a sign inviting shoppers to “Experience a white Christmas”, in a move that’s been slammed by Indigenous activists.

Author and activist Stephen Hagan, who famously campaigned against the “N*gger Brown Stand” in 1999, said the display was offensive.

"EXPERIENCE A WHITE CHRISTMAS." Display at Terry White Chemists Clifford Gardens: Toowoomba. What a faux pas! #Helon pic.twitter.com/AI2063T4F4 — Helon (@__Helon) November 29, 2016

“Toowoomba is the most racist city in Australia,” he told the Sunshine Coast Daily.

“Words can’t describe this behaviour in the 21st century. I can understand it in the 1960s but to do it today is inexcusable.”

The store’s Managing Partner Alwyn Baumann offered an “unreserved apology” in a statement, saying the store had made a “regrettable error” with the display dolls, which they will “not stock in future”.

A spokesman for the store clarified the connection between the dolls and the sign was completely unintentional.

Golliwogs are considered offensive due to their history as a blackface motif, in which people of colour are depicted as comically idiotic and as plantation slaves.