NZME Advisory was fined just under $88,000 for supplying unsafe magnetic puzzle toys that a child swallowed and had to have surgically removed. File photo Photo: RNZ / Brad White
The Commerce Commission is appealing a fine of almost $88,000 imposed on NZME for supplying unsafe magnetic puzzle toys, commonly known as buckyballs.
The toys were made up of small, high-powered magnetic balls and were sold via the online store GrabOne, which NZME used to own.
The company, which has since sold the site, sold 213 of the magnetic toys between October 2020 and September 2021.
NZME recalled the sets and contacted customers to notify them of the recall after being contacted by the Commerce Commission.
The Commerce Commission took the company to Auckland District Court in May, claiming it breached the unsafe goods notice, saying a child had swallowed two of the magnets from the toys and had to undergo significant surgery to remove them.
NZME was fined $87,750 after pleading guilty. However, the Commerce Commission on Monday said it was appealing the fine as "manifestly inadequate".
Chair John Small said the commission originally submitted an end sentence of $140,000 - $168,000 was an appropriate fine, after applying discounts for mitigating factors.
"The fines imposed on breaches therefore must be significant enough to deter businesses from similar conduct and encourage them to put the processes in place to ensure they comply with their obligations," Small said.
Under the Fair Trading Act, there are safety standards and unsafe goods notices in place which apply to various products, including toys, bikes, and small high-powered magnets.
Businesses must ensure the products they sold met the relevant requirements before they were supplied, Small said.
He was unable to comment further as the matter was now before the courts.