23 Sep 2020

Companies fined for importing dangerous toys

8:02 pm on 23 September 2020

Two companies that imported dangerous toys have been fined a total of $118,000 dollars.

Toy animals that were being sold by Greenstar Holdings Limited.

Toy animals that were being sold by Greenstar Holdings Limited. Photo: Commerce Commission

It was the second such prosecution for SDL Trading Limited, which was fined $64,000 in the Auckland District Court for selling a toy fire engine that was a choking hazard.

In sentencing in the Auckland District Court, Judge Paul said the conduct was "highly careless"

"[SDL was] on notice and armed with the necessary knowledge of the need to comply with the product safety standard."

In fining Greenstar Holdings Limited $54,000 in the Manukau District court for selling squeaker toys which also put young children at risk of choking, Judge Blackie said he would like to see substantially higher penalties for such offending.

He said sentences imposed for similar conduct "are not sending the message to importers, distributors and retailers."

"It is the very young children at risk. They do not have the ability to assess a hazard or potential hazard as does an older person. A number of traders... have been profiting from the distribution of these goods."

"With the interests of the young and vulnerable in mind, I am of the view that substantially higher penalties could be justified," Judge Blackie said.

The Commerce Commission said the cases show traders can't avoid their obligations by putting warning labels on such toys, which are clearly meant for young children.

Judge Blackie said the age suitability indications were "clearly inadequate and misleading."

"The market for the toys, known to almost every New Zealander who has raised a family, is… play things for infants in the bath."

Under the Fair Trading Act, the maximum penalty for a corporate is $600,000 per offence and $200,000 per offence for an individual.

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