IVE Distribution has been accused of breaching child employment laws between July and September last year by hiring 411 children aged under 15 to deliver catalogues and flyers to Victorian homes.
Children can deliver newspapers and advertising material in Victoria from age 11, as long as their employer holds a child employment permit or license.
But Wage Inspectorate Victoria has charged the company with employing the children without the required permits, an offence which carries a maximum fine of $18,429.
IVE Distribution, which is part of the ASX-listed IVE Group, prints and delivers 3.6 million catalogues a year for some of Australia's largest retailers.
The NSW-headquartered company's website states its 14,000 "professional walkers" reach 17,000 households each week.
In a statement to the ASX on Monday, IVE Group executive chairman Geoff Selig said its distribution arm became aware that workers under the age of 15 in Victoria required permits in late July 2022.
"This permit is in addition to our long-standing practice of obtaining express parental consent, and complying with working with children requirements," he said.
"Victoria is the only state in Australia that requires a permit of this kind."
IVE Group does not expect any potential penalties to have a material adverse impact on the business, Mr Selig added.
Victoria's child employment permit system was changed to a licensing system in July this year.
Mr Selig said the company was granted a general child employment license late last month, removing the need for it to apply for a large number of individual permits.
The regulator said the system helps protect children under 15 from work that could harm their health or wellbeing and ensures employers understand workplace risks and implement safety measures.
The case is scheduled for a mention hearing in the Melbourne Magistrates Court on October 2.
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