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Commerce Commission v Mega Import and Export Ltd [2018] NZDC 2355

Published 09 October 2023

Sentencing — supplying defective and unsafe toys — choking risk — Fair Trading Act 1986, ss 29, 30 & 40 — Fair Trading Amendment Act 2013 — Sentencing Act 2002 — Product Safety Standards (Children’s Toys) Regulations 2005 — Commerce Commission v L D Nathan & Co Ltd [1990] 2 NZLR 160 — Commerce Commission v The 123 Mart Ltd [2017] NZDC 13915 — Commerce Commission v Brand Developers Ltd [2015] NZDC 21374 — Hessell v R [2010] NZSC 135, [2011] 1 NZLR 607. The defendant company was for sentence on two representative charges of breaching the Fair Trading Act, by supplying 1163 defective and potentially unsafe toys to retailers. The toys broke into small parts when tested, thereby presenting a choking risk for young children. The aggravating features of the offending were a high degree of carelessness (the defendant's managers had no compliance process in place and were ignorant of New Zealand's trading laws), the extent of the offending, and threatening the safety of members of the public. The start point for fine was $100,000. In mitigation the defendant had cooperated with the investigation, was of previous good character and had pleaded guilty early. The final fine was $32,500 on each charge, for a total of $65,000. The Court observed that several instances of similar offending were due to shortly come before the courts. However the Court stated that it would not be appropriate to view the current decision as a tariff case, given that each case turns on its particular facts. Judgment Date: 9 February 2018.