A toy importer has been fined nearly $74,250 in the Manukau District Court for selling unsafe toys, including plastic rattles.
2 Boys Trading Limited was charged by the Commerce Commission for selling 1700 toys that had small parts break away when tested.
The investigation found the small parts to be a choking hazard.
Judge Chris Field said the court needed to "send a clear message to other companies trading in this way that significant penalties can be imposed for breaches of this kind".
The affected toys were an aquatic toy set, Baby Star rattles and a soft plastic doll.
2 Boys tried to argue the toys were for children aged three years old and over.
However, the Commerce Commission chair, Anna Rawlings, said the toys were clearly intended for younger children.
She said traders cannot avoid their legal obligations by including 3-plus labelling on their products.
The toys have been removed from sale and recalled. They were sold at eight Lotsa Goodies stores in Auckland, Hamilton and Christchurch.