Commerce Commission proceedings on GrabOne magnet sales

NZME Limited. 2-4 Graham Street, Private Bag 92198, Victoria Street West, Auckland.
1
MARKET ANNOUNCEMENT
15 December 2022
FOR IMMEDIATE RELEASE
Commerce Commission proceedings about sale of magnet sets on
GrabOne

AUCKLAND, 15 December 2022: NZME Limited (NZX: NZM, ASX: NZM) (“NZME”) advises that
the New Zealand Commerce Commission has filed court proceedings against NZME Advisory
Limited (a subsidiary of NZME, and formerly called GrabOne Limited) under sections 31(5) and
40(1) of the Fair Trading Act 1986 in relation to the historical sale of magnet sets on the GrabOne
website. NZME sold the GrabOne business in October 2021.

The Commerce Commission considers that the sale of these magnet sets was prohibited under
the Unsafe Goods (Small High Powered Magnets) Indefinite Prohibition Notice 2014, and that
there has therefore been a breach of the Fair Trading Act.

When NZME was alerted to the issue in September 2021, it immediately refunded all purchases
and undertook a thorough recall process. That recall process was completed in July 2022.

NZME has fully cooperated with the Commerce Commission in relation to its enquiries in this
matter to date. NZME is reviewing the charges and NZME has yet to determine the position it will
take in response.

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. 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. As such there is no change to NZME’s existing guidance of 2022 EBITDA,
as provided to the market on 9 November 2022.


ENDS

Authorised by: Michael Boggs, Chief Executive Officer

For further information please contact:

For media For investors
Kelly Gunn
GM Communications
+64 27 213 5625
Kelly.gunn@nzme.co.nz

David Mackrell
Chief Financial Officer
+64 21 311 911
David.mackrell@nzme.co.nz