Thirteen children and teenagers were hurt playing on imported microscooters, a court heard.
Olop Leisure Group admitted two offences of supplying a microscooter which failed to comply with safety requirements and was fined £500 and ordered to pay £1,200 costs by Brighton magistrates.
Len Batten, prosecuting for Brighton and Hove City Council, told the court the city council launched an investigation after a 15-year-old boy from Peacehaven injured his hand while raising the handlebar on a scooter the same day he bought it for £70 from Woolworths, Western Road, in July.
Mr Batten said other people who bought the model in different parts of the country also suffered injuries, including one person who broke a finger.
The scooter was tested and failed toy safety regulations.
Mr Batten showed magistrates how the injuries were caused when people caught their fingers lifting the handlebar.
Christopher Russell, defending, said the Torquay-based company had believed the product had passed safety tests and complied with the highest European and British safety standards.
He said: "This case has been a bitter blow to the company's morale.
"It believe it was a perfectly safe product. The reports of injuries that emerged were greeted with disbelief."
The company spent £84,000 recalling the scooter, which was imported from the Far East.
The model has now been modified to the satisfaction of trading standards officers.
Compensation claims for the injuries have been settled by the firm's insurers.
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