Five contaminated products were discovered in a shop in Derby, with lead and mercury being found in skin whitening cream and hair tonic.
In addition, other products in the shop were also found to be labeled incorrectly. Police are now planning to carry out a survey of other outlets across the city.
The products were believed to have been manufactured outside Europe, where there is less regulation of ingredients and manufacturing.
Mr Afzal, a cabinet member for the environment and public protection, said: “If people use these products on a regular basis it can lead to brain damage, kidney failure and damage to the nervous system.”