Online auction site TradeMe has announced that is banning the sale of pugs and English and French bulldogs.
In a statement, the company said the three breeds of dog suffer from a condition called Brachycephalic Obstructive Airway Syndrome (BOAS).
BOAS affects the ability for these breeds to breathe properly due to their flat faces and exaggerated features.
The ban, which also includes purebreds and crossbreeds, comes in to effect on March 1.
The New Zealand Veterinary Association has said that many of these dogs "live in continued states of distress."
A 2015 study found that 75% of French bulldogs showed "chaotic" breathing patterns brought on by airway obstruction. In another study, 50% of pugs failed a simple walking exercise test, with 11% unable to withstand even the brief 11-minute task.
"This is not a decision we've made lightly, as we know how popular and well loved these breeds are, however we cannot in good conscience allow the sale of these animals any further," TradeMe spokesman James Ryan said.
The company had consulted with the SPCA, New Zealand Veterinary Association and the Ministry of Primary Industries among others about the issue.
Adoption of the breeds would still be allowed but it was clamping down on breeders selling these dogs.
TradeMe has also called on the Government to consider regulatory intervention on the sale of the three breeds.