can nearby magnet damage iPhone ?

I'm probably asking unusual question here.
When I bought my iPhone 3G, the Vodafone sales rep advised me to never use a case with magnetic strip closure, apparently it would damage the iPhone over the time (this was apparently information given to Vodafone by Apple).

So 2 days ago I've ordered a leather case from online Apple Store in Australia, the case I've ordered had velcro closure.
Unfortunatelly they shipped wrong leather case, one with magnetic strip closure. I called Apple Australia today to ask why would they sell an accessory product for iPhone which may potentially have damaging effects on iPhone (as per the information given to me at Vodafone store) and I asked for a replacement leather case, the one with velcro closure.

They are telling me now that the magnet cannot damage iPhone, I'm just not sure whether I should trust this new contradicting information.

What are your thoughts ? Anyone here can report extended usage of case with magnetic strip closure without any side effects on iPhone ?

Thanks