The Commerce Commission has appealed the fine imposed on NZME Advisory Limited (NZME) for selling a dangerous magnetic toy that left a child needing surgery, arguing the $87,750 fee is "manifestly inadequate".
According to the Commerce Commission, NZME sold the magnetic puzzle toys, mostly known as buckyballs, on its Grabone.co.nz website it used to own between October 2020 and September 2021.
The commission said the product was sold in breach of an unsafe goods notice.
"Tragically, we are aware of one case in New Zealand where a child did swallow two of the magnets from one of the magnetic toys supplied by NZME, and significant surgery was required to remove them," general manager of fair trading Kirsten Mannix said.
Today, the commission said the fine imposed by Auckland District Court was not enough.
Commerce Commission chairman John Small said a range of $140,000 to $168,000 would be more appropriate.
"[The fine] 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.
A statement from the commission said "the ban exists because if more than one of the magnets are swallowed, they can attract to each other within the body which is extremely dangerous".
The matter is now before the High Court at Auckland.
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