While there have been no reports of injuries, the toy has failed to meet mandatory safety standards.
The magazine Dmag last month issued a national voluntary recall and parents in other states have already been urged to throw out the toy.
More than 16,000 of the toys, comprising a red basket catcher, blue popping section and white ping-pong type ball, have been distributed throughout NSW.
"The ball-popper can fire objects at such force that it poses a serious danger to children and adults," NSW Fair Trading Minister Linda Burney said in a statement.
"I urge parents who purchased the July issue of Dmag magazine with the toy attached to remove this toy immediately and destroy it."
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