The Huddersfield firm faced criticism from retailers who have had contracts terminated, or been told of strict new rules about selling online.

It said its decision to tighten retailing conditions, including internet sales, followed a year-long consultation.

Retailers have been told they "must adhere to the policy to sell within the law, improve customer satisfaction, protect customer data and demonstrate a clear after-sales policy". Mamas & Papas said the move was necessary to protect consumers.

But retailers claimed the new policy was intended to prevent online retailers undercutting prices and devaluing its goods.

One North Yorkshire nursery goods retailer, who has sold Mamas & Papas products for almost 25 years, received a letter earlier this week terminating his contract. The letter said because of "insufficient sales" it was "uneconomical to continue trading" with his firm.

The retailer, who asked not to be named, had sold Mamas and Papas' goods online as well as instore, at a 5 to 10 per cent discount.

He said: "Mamas & Papas has always been a good selling range but now I can't supply them. They are being hit by internet retailers and independent retailers who have been cutting the price of their products.

"They have done the same to other independent retailers over the past ten days."

Mamas & Papas, which has franchises around the world, was founded in 1981 by David and Luisa Scacchetti. It has a £110m turnover and employs 1,100 globally, of which 500 are in Huddersfield.

Its customer list includes pop star Victoria Beckham and fashion designer Stella McCartney.

Mamas & Papas' new policy follows a French court's decision to fine eBay £31m for selling fakes over the internet. On Monday eBay was ordered to pay damages to LVMH, maker of brands such as Fendi and Louis Vuitton, for failing to prevent illicit sales of its goods.

Nigel Craven, who runs Ankle Biters Nursery Goods in Sheffield, welcomed Mamas & Papas' decision. "In this industry the biggest problem is online retailers selling at stupid prices.

"I'm more than happy to go with a company that does not allow that. They are trying to stop people selling at silly prices and forcing retailers to go somewhere around that.

"If I'm operating a bricks and mortar shop it's impossible to keep trading at those margins.

"More and more independent retailers are going under because of it. Mamas & Papas do not dictate the price I sell at. I welcome what they are doing. As well as the customer protection issues, at the end of the day they are trying to protect their prices."

Mamas & Papas expects retailers to adhere to its new policy by September. "Independent retailers are free to use any channel to sell through and at any price point but they must adhere to the policy. What the policy states is that they must have stock to sell, that customer payments and personal data are secure and that the use of any online shopping platform be consistent with the complete internet policy such as displaying accurate product descriptions and a fair and clear after-sales policy.

"These are standards set to protect the consumer as it was found that irregularities in product information, images, stock availability and after-sales care was inconsistent with Mamas & Papas brand values."