The warning came after Mattel recalled another 55,000 Chinese-made toys because of lead contamination fears.
"We will give people like Mattel the legal liability for importing toxic toys and if they import them, they will be prosecuted," said Arlene McCarthy, chairman of the European Parliament's Consumer Protection Committee.
The latest recall affects 12,000 Go Diego Go Animal Rescue Boat toys in the UK and the Irish Republic. Surface paint on the toys may contain excessive levels of lead.
Another 38,000 of the Animal Rescue Boats were sold in the US and 5,500 in Canada.
Ms McCarthy, Labour MEP for the North West, said the European Parliament had voted unanimously, four weeks ago, that it would not accept toxic toys.
"What we have been told is that many of these toys were shipped in May, June and July this year so they may be in warehouses," she told GMTV. "We have asked for urgent action to recall anything that has safety implications for children."