Supplying or offering to supply goods that did not comply with safety standard — whether toy was designed for child under the age of three years — product safety standards — sentencing — Fair Trading Act 1986, ss 29, 30 & 40 — Product Safety Children's Toys Regulations 2005 — Commerce Commission v The 123 Mart Limited — Commerce Commission v Mega Import and Export Limited — Commerce Commission v AHI Company Limited. The defendant company was sentenced having pleaded guilty to six charges under section 30 and 40(1) of the Fair Trading Act. The defendant company sold 4704 units of a bathtub baby toy to 63 retailers over the course of three years. The toy included small parts; the packaging included a picture of a young child in nappies and warnings on the back that the toy was not suitable for children under the age of three as there may be a choking hazard. The offending was aggravated by the extent of the offending including the number of items sold and the duration of offending, the risk of choking and the vulnerability of children. The court found that the defendant company was negligent or careless as it had failed to make it's own judgment about whether more was required to make the toy compliant with safety standards before the toy was sold in New Zealand. The defendant company was found not to have turned it's mind to whether the toy could apply to children under three and whether it presented a choking risk. In setting the starting point for a fine, the court noted the size of the company which would affect it's ability to pay a fine and it's ability to meet a number of regulatory requirements. From a starting point of $120,000, discounts were applied to recognise the defendant company's previous good character, co-operation with the prosecuting Commission and early guilty plea. The defendant company was fined $81,000 and court costs were ordered. Judgment Date: 26 March 2018.