Discount retailer Panda Mart, now known as PD Mart, is heading to court after the Commerce Commission (ComCom) alleged the company sold 57 products that did not comply with mandatory safety regulations.
The court action has prompted an urgent warning to retailers about product safety.
PD Mart operates two stores in the country, one in Auckland and the other in Christchurch. Its variety offerings often include products marketed towards children.
ComCom has been sending staff to these locations since October 2024, where they allegedly found non-compliant goods. The 57 products in question included children’s toys, baby walkers, and seven types of children’s car seats that were advertised as complying with an international safety standard when they did not, the commission alleged.
“Regardless of what something costs or what shop you buy it from, businesses must comply with the New Zealand product safety requirements that apply to the goods they sell,” the commission’s general manager of competition and fair trading, Rebecca McAtamney, said.
“Product safety standards exist for a reason. When you walk into a shop and buy a product for your family, particularly a product designed for a child, you should be able to trust that the retailer has done the work needed to make sure it complies with New Zealand’s safety requirements.”
McAtamney claimed the selling of the allegedly non-compliant products “puts New Zealand consumers, particularly young children, at risk”.
PD Mart recalled and removed potentially unsafe products during the long-running investigation. The retailer was issued a ‘stop now’ letter over safety concerns involving children’s car seats. This year, PD Mart agreed not to sell products in categories of concern for at least six months, following court-enforceable undertakings.
“It’s the scale and recurring nature of the issues we identified that are a serious concern for the Commission,” McAtamney added.
“Selling affordable products doesn’t mean retailers can cut corners on safety. They have a responsibility to comply with the law and invest adequately in the systems, processes and staff training needed to meet their legal obligations.”
The commission accuses PD Mart of lacking adequate systems, policies and processes to meet its obligations, and not adequately training staff. It will also allege that PD Mart misrepresented customers’ ability to return products under the Consumer Guarantees Act.
In Australia, courts ordered a 72-hour shutdown of two Panda Mart stores in December 2025, following an inspection by Consumer Affairs Victoria found ‘hundreds’ of illegal items being sold in both the Preston and Cranbourne stores. The investigation led to 147 criminal charges, to which Panda Mart pleaded guilty.
Panda Mart has since opened its third store in Australia, with the Brisbane location opening its doors before the retailer is sentenced in the trial brought forward by Consumer Affairs Victoria.
