The Commerce Commission has filed court proceedings against NZME Advisory, a subsidiary of media company NZME, in relation to the historical sale of magnet sets.

NZME said in a statement this morning that the Commerce Commission considered the magnet sales to be prohibited under the Unsafe Goods (Small High Powered Magnets) Indefinite Prohibition Notice 2014 – which was a breach of the Fair Trading Act.

NZME Advisory was previously known as GrabOne before NZME sold the business in October 2021. NZME said it was alerted over the issue in September last year and that the company proceeded to undertake a “thorough recall process” which was completed in July 2022.

“The Commerce Commission has not yet advised NZME of the penalties it will seek, and the decision as to actual penalties will be a matter for the court,” the company said.

NZME was currently reviewing the charges and had yet to determine the position it will take in response.

“However, based on the maximum penalties available under law for each of the charges and the insurance policies that NZME holds, these proceedings are not expected to have a material effect on the financial position or profitability of NZME.”