123 Mart has been found guilty in the Auckland District Court on 17 charges under the Fair Trading Act.
The charges related to the retailer selling toys that didn't meet the mandatory product safety standard enforced by the Commerce Commission. The retailer sold 9000 of the 7 toys with small parts that were a choking hazard for young children.
The commission laid 22 charges last year. 123 Mart elected for a defended hearing. Five charges were dismissed at the end of the trial.
123 Mart earlier pleaded guilty to 5 charges of selling more that 1200 pairs of children's pyjama pants that didn't have the required fire-danger labels and 11,000 items of clothing that didn't meet labelling requirements for care, origin and content.
123 Mart has shops under 4 different brands - The 123 Mart, Dollar Store 123, King Dollar Store and Max!Out.
Sentencing will take place on October 13.
Here is further information on toys and sleepwear sold at 123 Mart that have been recalled: