Over the coming months regular segments about the ACCC will be broadcast on the television program On The Land.
On The Land is a national rural and regional affairs program that broadcasts through the prime network to regional areas only, attracting an average audience of 400 000 viewers each week.
The segments, an initiative of the ACCC’s Small Business, Rural and Regional Program, aim to provide information on the ACCC and the Trade Practices Act to small businesses and consumers in regional Australia. On the Land will also broadcast weekly information tips on different aspects of the ACCC’s work.
The segments kick off in October with an interview with ACCC Chairman Graeme Samuel. Upcoming segments cover topics such as ACCC participation at agricultural expos, rural doctors and the Trade Practices Act, refunds and warranty rights, product safety and more.
Product safety
New mandatory information standard for labelling of tobacco products
Following a review of the health warnings on tobacco products conducted by the Departments of Health and Ageing and Treasury, a new set of regulations for the labelling of health warnings on tobacco products was gazetted on 26 August 2004 and commenced on 1 September 2004.
An implementation period of 18 months from commencement of the new regulations has been prescribed to allow for print machinery alterations, printing of the new health warnings and run-out of stock complying with the current regulations. During this time both the current and new standards will apply concurrently. From 1 March 2006 all manufacturers and importers will only be permitted to supply tobacco products complying with the new regulations.
The main features of the Trade Practices (Consumer Product Information Standards) (Tobacco) Regulations 2004 are as follows:
For cigarettes and loose/pipe tobacco: a new set of 14 health warnings and associated colour photographic images and explanatory messages to cover 30 per cent of the front and 90 per cent of the back of the pack (with some variations for back of pack messages for loose/pipe tobacco products to allow for the size and shape of the back of the pack). The proposed new warnings are larger than the present warnings and provide information on an expanded range of health effects of smoking.
Manufacturers and importers will be required to comply with a new rotation system for the 14 health warnings (seven health warnings and explanatory messages with graphics in set A and another seven in set B) to optimise consumer learning and awareness of the health effects of smoking.
Set A health warnings will be required to be printed on tobacco packaging for a period of eight months (1 March 2006–31 October 2006) ending with a four month changeover period (1 November 2006–28 February 2007). During this changeover period packages may be printed with either set A or set B health warnings. From 1 March 2007 all packages will be printed with only set B health warnings for eight months with another four month changeover period (1 November 2007–29 February 2008) before packages are again printed with only set A health warnings.
Set A and set B health warnings will alternate every year for the life of the regulations. Health warnings within sets A and B would also be equally rotated within brands over each eight month period.
A new consumer product information message to go on the side of cigarette packs and on some packages of loose/pipe tobacco, as follows:
Smoking exposes you to more than 40 harmful chemicals
These chemicals damage blood vessels, body cells and the immune system
QUIT NOW to reduce your risk of chromic illness or premature death
This will replace the current listings of tar, nicotine and carbon monoxide on cigarette packs and provide consumers with qualitative information on the chemicals in tobacco smoke and a website reference for more information. The national Quitline number and website will also be printed on the pack.
A set of new health warnings (including graphic warnings) specifically for cigar packs is intended to increase the awareness of consumers of the health risks of smoking cigars.
Extension of the coverage of tobacco products to include all products which contain tobacco and are manufactured in Australia or imported into Australia. This will ensure that all products containing tobacco such as bidis and nasal snuff are labelled with appropriate health warnings.
A copy of the regulations and explanatory statement can be found at Trade Practices (Consumer Product Information Standard) (Tobacco) Regulations 2004 and Explanatory Statement.
Portable fire extinguishers
The mandatory consumer product safety standard for portable fire extinguishers was re-gazetted on the 25 August 2004. The mandatory safety standard provides minimum design, construction and labelling requirements for water, wet-chemical, foam, powder, carbon dioxide, vaporizing-liquid and non-rechargeable type portable fire extinguishers.
A new clause in the re-gazetted mandatory standard allows for new designs and innovations to be introduced. Suppliers of portable fire extinguishers can obtain a copy of Australian Standard AS/NZS 1841.1:1997 Portable fire extinguishers Part 1: General requirements from Standards Australia. Standards Australia can be contacted by telephone on 1300 654 646 or visit the website at www.standards.com.au.
It is advisable for suppliers of portable fire extinguishers to obtain a test certificate or request one from the manufacturer verifying that such products comply with the mandatory requirements.
For inquiries about this standard call the ACCC Infocentre on: 1300 302 502.
Consumer behaviour—cause and effect
On 6 September ACCC Deputy Chair, Louise Sylvan, addressed the Infant and Nursery Products Association of Australia. An edited extract of her speech, Consumer behaviour—cause and effect, is below.
There’s perhaps no area that best shows the need for strong consumer protection agencies than child safety.
Kidsafe tells us that every year in Australia, injuries involving nursery equipment result in:
6500 children under three needing medical treatment (125 a week)
540 children being admitted to hospital (10 a week)
10 child deaths.
Now, it’s true that the vast majority of these injuries are in no way due to any fault of products.
But it’s also the case that every parent wants to ensure that the cots, bassinettes, strollers, change tables, car seats, toys, whatever, are the best they can afford, and, crucially, that these products—regardless of price—in no way put their precious child at risk.
So when it comes to infant and nursery products, consumers are far from passive. They don’t necessarily wait for standards to change, or regulators and manufacturers to act—often, they can be the driving force behind change and improved safety.
An interesting example of this is bunk beds.
In the past, government agencies had tried to get voluntary compliance with the full Australian Standard for bunk beds. Suppliers resisted saying that the market was too price-driven to allow bunks with safety features to be competitive.
Ultimately, Australian governments found it necessary to regulate these products. However, not wishing to drive prices unnecessarily high with prescriptive requirements, only the most critical elements of bunk bed safety were included in the regulation: that is, requiring guard rails to prevent head and limb injuries from falling out of the top bunk, and prohibiting protrusions that can lead to strangulation hazards.
This meant that suppliers had a choice whether to comply with other voluntary parts of the Australian Standard, which includes items such as ladder safety, materials and construction.
And suppliers are now finding that things have changed in recent years.
Firstly, consumers are becoming better informed and increasingly safety conscious. Safety is an increasing factor in consumer product choice.
Secondly, some of the demographics are changing. First time parents are often older and more financially secure and city dwellers are increasingly moving to small inner city apartments. What this may mean is that demand for bunk beds may be driven less by price and more by other factors, such as accommodation considerations as well as safety.
So there is reason to believe that the safety of bunk beds is increasing both because of regulatory intervention as well as consumer demand—and in my view, will continue to do so.
In the integrated nature of the product safety system in Australia, three sectors have responsibility—business (manufacturers and retailers), government and consumers themselves. Consumers play a key role because use of products is an integral part of an overall hazard reduction system. To continue with our example, even the safest bunk bed still has, by its very nature, hazards for young children. Responsible use is the third part of the equation to minimise the injuries that occur.
This example illustrates the two main themes I wish to talk about today. The first is that understanding how consumers behave—what drives their decision-making, how things might change over time—is a key factor in building competitive advantage for businesses and a key factor in governments‘ understanding how to regulate effectively. And secondly, I’ll reinforce the notion that it takes all three sectors—government, suppliers and consumers—working together to make product safety work. I’ll also spend some time outlining the changes recently proposed for discussion to our product safety regime.
