Charges were laid in May 2016 and additional charges in August that year.
"During the charge period 123 Mart operated approximately 60 retail stores throughout New Zealand, with a multi-million dollar turnover and a very large number of product lines," the commission's statement sad.
The store specialises in low-cost consumer products including toys, costumes and cosmetics. It started operating in New Zealand in 1995 and has shops under four different brands: The 123 Mart, Dollar Store 123, King Dollar Store and Max!Out.
The commission said 123 Mart had withdrawn all the toys and clothing from sale.
The company is to be sentenced on October 13.
Recalled items
Toys
"My Baby Concert trumpet
"My Baby Concert" rattle
"Toys" wind-up snake set
"The World of toys" house set with small components
Small "Magnetic letter and number" sets
Toys and sleep pants
Dream House set
Butterfly on a walking stick
Fairy Doll toy
Beaut Surprised girls dolls
Musical Band set
Children's sleeping pants - no fire labelling