Commerce Commission appeals NZME fine

The Com Com says the NZME fine over a GrabOne toy campaign was not steep enough. Photo / Jason Oxenham

The Commerce Commission has appealed an $87,750 sentence meted out by the Auckland District Court last month to media group NZME, saying it is “manifestly inadequate”.

The market watchdog has now filed an appeal in the Auckland High Court over the breach of product safety laws.

The appeal, it said, was about “protecting consumers from potentially dangerous, harmful products”.

“Fines imposed on breaches 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.”

NZME copped the fine for supplying unsafe ‘buckyballs’ – small, high-powered magnetic balls – on its former GrabOne.co.nz store between October 2020 and September 2021, during which it sold 213 of the toys.

Commission chairman John Small said it had originally submitted that an end sentence of between $140,000 to $168,000 would be more appropriate. A child swallowed two of the magnets from one of the magnetic toys and surgery was required to remove them.

After being initially contacted by the commission, GrabOne recalled the sets and contacted customers to notify them of the recall. NZME is a publicly listed group of broadcasting and media companies and includes both BusinessDesk and the NZ Herald in its stable of companies.

Last month, NZME chief executive Michael Boggs acknowledged that the charges were brought after an 11-year-old girl ingested the magnets and subsequently required surgery to remove them.

NZME made a donation to Starship Children’s Hospital, which provided medical care for the young girl, and has made a support payment to the family. NZME divested the GrabOne business and assets in October 2021.

“We are disappointed the Commerce Commission is appealing the decision, an NZME spokesperson said.

“We understood the fine at sentencing reflected the Court’s consideration of NZME’s full co-operation, our proactive product recall efforts, an early plea and our voluntary monetary contribution. We have nothing further to add at this time.”