Dr Phillips says it is an area of animal welfare that had been recognised internationally over the last seven or eight years.
"If we look back at these same dog breeds in the 1950s, they had considerably longer noses. Human intervention - with breeders being awarded in the show ring for shorter, flatter faces with squashed noses - has led to the dogs' respiration being severely compromised.
"The problem is, these are the cutest puppies you will ever see. But people don't realise what's going on behind the cuteness. By six months old the dog won't be able to go for walks with you because it will pass out from lack of oxygen.
"The Trade Me ban will make them less accessible and people will hopefully ask questions."
The sale ban extends to crossbreeds as well as purebreds, but they can still be listed for adoption on Trade Me.
Trade Me policy and compliance team leader James Ryan said the breeds are being banned due to the medical condition they share.
Many dogs suffer so severely they have trouble exercising for longer than three minutes.
Some dogs find it difficult to moderate their body temperatures through panting and can die from overheating.
"We didn't take this decision lightly," Ryan said, adding that they sought help from the SPCA and the New Zealand Veterinary Association (NZVA).
The New Zealand Veterinary Association has welcomed the decision.
Chief executive officer Mark Ward says the demand for French bulldogs, pugs and English bulldogs has pushed prices up for puppies and unscrupulous breeders have flourished to supply this demand.
By selling online, rather than meeting purchasers face to face, these breeders have not been subjected to having the parents or their facilities inspected by puppy buyers.
"The rise in popularity of English bulldogs, French bulldogs and pugs has seen a marked increase in dogs presenting to veterinarians with serious health issues from airway disease and eye problems.
"High proportions require correctional surgery to provide them with the simple ability to breathe without difficulty and blink without pain.
"Without correctional surgery, large numbers of these dogs live with chronic pain and distress, with many owners and breeders unaware that their dog is suffering.
"It is hoped that by Trade Me making this stand, puppy buyers will take the opportunity to make an informed choice before choosing a pet. Veterinarians are committed to improving animal welfare and understand the importance of having a dog that is a good fit for a family".
Ryan said Trade Me was not making judgments on current owners of the breeds but sees the ban as an opportunity to educate potential owners.
Hastings couple Mark and Hitomi Lim breed French bulldogs and say they are pleased with the decision by Trade Me and they hope it will limit the number of unscrupulous breeders who are not taking responsibility for the health and welfare of the dogs.
"We are not breeding our dogs for money. We are passionate about the breed, we do this for the love of the dog and we are very selective in our breeding," said Mark. "We have a litter due and it is only the second we have bred in six years ... it took us several years to choose the right dog to breed from."
Mark says with owners prepared to pay a premium price for the breed, "everyone jumps on the bandwagon".
Dr Phillips says vets are happy to guide breeders, to help design breeding programmes to reduce the health issues for brachycephalic breeds.
"This issue is preventable and life threatening. The Trade Me ban is a good start to encourage people to look at the welfare impact of what they are breeding."