Commerce Commission v 2 Boys Trading Ltd [2019] NZDC 22557

Published 05 August 2020

Sentencing — supplying goods not complying with product safety standard — toys — Fair Trading Act 1986, s 30(1) — Sentencing Act 2002 — Commerce Commission v L.D. Nathan & Co. Ltd [1990] 2 NZLR 160. The defendant appeared for sentence on 13 representative charges of of supplying or offering to supply toys (a set of rattles, a plastic doll, and a set of squeezy aquatic toys) that did not meet product safety standards. The defendant received the toys from a supplier and then distributed them to its retailer. Testing carried out by the Commerce Commission showed the toys to be defective in a number of respects. When notified, the defendant removed the toys from sale and issued recalls. The Court considered that the defendant's conduct was highly careless, in that it had failed to conduct safety testing on the toys. Also the offending continued for almost six years. The Court set a start point for fine of $110,000, before allowing discounts for previous good record, steps to remedy the situation and guilty plea. The total fine was $74,250. Judgment Date: 20 June 2019.