THE drug that killed Sydney teenager Henry Kwan was not "synthetic LSD" but something else not yet included on any banned products list, the Eros Association claims.

Misinformation and ignorance are driving the debate about the drugs, says Eros Association CEO Fiona Patten, who has been advocating for retailers of the products.

She said the drug, which caused 17-year-old Henry to think he could fly when he jumped off a balcony earlier this month, is a new product called NBOMe.

"It's clearly a dangerous drug and yet it has not been included on any of the banned lists," Ms Patten said in a statement.

Some of the 19 products prohibited under a temporary national ban were completely harmless, she said.

"What happens if a government bans a substance that later turns out to be completely legal under other laws and is not a dangerous drug? Is the federal government looking at compensating traders? Are they looking at a buy-back scheme similar to John Howard's approach on firearms?" she asked.

Ms Patten said she was rejected by Health Minister Tania Plibersek last week when she attempted to brief the federal government on the extent and make-up of the industry.

Ms Patten said prohibition of drugs has never made them safer or reduced demand.

She said the only recreational drug in Australia with decreasing usage was tobacco.

"The reason smoking is in strong decline is because it is legal, heavily regulated and the subject of extensive health education campaigns," she said.

She said the government was ignoring its own success by creating new laws to drive the products underground.

Minister Assisting for Deregulation David Bradbury told reporters in Sydney on Sunday that the sale and distribution of the products equated to organised crime.

"This is not about some producer that has made a mistake and produced a product that is substandard; these are drugs that are killing people," he said.

He admitted the national ban of 120 days was "not the most effective way of tackling the problem", but would buy time for states such as NSW and the Northern Territory to adopt a national poisons standard.

The standard lists drugs by their chemical compound and not by name, making them easier to police.