The Australian Competition and Consumer Commission (ACCC) has issued a warning about a dangerous dye found in jeans on sale in Australian stores.

The ACCC says it tested a number of clothing items for dangerous azo dyes after being tipped off by the National Industrial Chemicals Notification and Assessment Scheme.

The tests uncovered clothes with high concentrations of the dyes, sparking recalls of more than 121,000 items from retailers including Myer, Target, Rivers, Trade Secret and Just Jeans.

"The ACCC identified a number of items as containing unacceptable concentrations of the hazardous dye," the ACCC said in a statement.

"While consumer exposure to hazardous azo dyes is likely to be very low, the associated cancer risks give cause for concern.

Item recalled over dye risk: Rivers – Doghouse style children's dark-denim and black jeans

Rivers – Doghouse style children's dark-denim and black jeans Just Jeans – Junior girls jeans and skinny jeans; junior boys pants, shorts, and denim shorts

Just Jeans – Junior girls jeans and skinny jeans; junior boys pants, shorts, and denim shorts Trade Secret – Firetrap Blackseal super skinny girls jeans

Trade Secret – Firetrap Blackseal super skinny girls jeans Pillow Talk – 50/50 poly/cotton 225 thread count plain dye range (red)

Pillow Talk – 50/50 poly/cotton 225 thread count plain dye range (red) Myer – Milkshake classic jeans, Wayne Junior acid wash jeans

Myer – Milkshake classic jeans, Wayne Junior acid wash jeans Target – Kids' and ladies' denim jeans Source: Product Safety Recalls Australia

"As a result, exposure to certain azo dyes, including benzidine-based dyes, should be minimised or eliminated."

A number of children's clothes, including jeans from Myer, Just Jeans and Target, were included in the recall.

The dyes have also been found in bed sheets and pillowcases sold through Pillow Talk.

ACCC deputy chairwoman Delia Rickard says there are no regulatory limits on these dyes at the moment but recommendations have been made to the Government.

"The dye is a known carcinogen but the risk of it actually migrating from the clothing to the person is extremely low ... you would have to wear it for a long time in sweaty conditions," she said.

"However, we are concerned so we've worked with the suppliers so all of these products have been recalled from the marketplace.

"We're also looking at what kind of regulation needs to be in place around this."