AAP reports an inner Sydney cafe is facing up to half a million dollars in fines after it was caught selling Bonsoy soy milk.

The milk was recalled on December 23 when 10 people, including a newborn baby, fell ill with thyroid problems in New South Wales, the Australian state where Sydney is located.

The product was recalled nationally after it was found to contain unusually high levels of iodine, which may affect the thyroid and cause people to feel unwell, Food Standards Australia (FSA) said.

The Luxe Bakery Cafe on Missenden Road in Newtown is now facing up to $500,000 in fines after FSA was tipped off that it was still selling the product.

Primary Industries Minister Steve Whan said in a statement on Sunday,

"Ignorance is no excuse. The NSW government does not tolerate businesses that breach food safety and put consumers at risk. Our priority is ensuring this product is off the shelves and out of coffee shops and cafes so consumers can dine with confidence."

This is an example of clear, concise communication with no confusion about competing mandates: public health rules. Good for them.