Aussino International Corporation Pty Ltd will correct its claims about its quilts labelled '100% Pure Cotton', which in fact contained six per cent polyester, after the Australian Competition and Consumer Commission raised concern.
Aussino supplied the quilts to retailers Australia wide between February 2004 and October 2004. The quilts had been made for Aussino by an overseas manufacturer.
The ACCC was concerned the representation '100% Pure Cotton' and other representations on the packaging of the quilt indicating it was made solely from cotton breached sections 52, 53 and 55 of the Trade Practices Act 1974, which prohibit a corporation from engaging in misleading or deceptive conduct or making certain false claims, including in relation to the composition of goods.
The ACCC was also concerned Aussino may have breached section 65D of the Act in relation to the care labelling instructions on the quilt's packaging insert. Section 65D of the Act prohibits a company from supplying goods which do not comply with a product information standard, in this case, the Textiles - Care Labelling standard.
The care labelling instructions incorrectly stated the quilt could be tumble dried. Test results indicated tumble drying resulted in significant shrinkage of the product and caused the quilt's filling to clump in places. Aussino acknowledged this instruction was incorrect and advised it had corrected the instructions on the packaging insert in this regard in August 2004.
After the ACCC alerted Aussino to its concerns, Aussino immediately ceased supply of all quilts and withdrew remaining stock from the market.
It also conducted tests on its blankets labelled '100% Cotton Thermal Blanket' and discovered some contained polyester fibres and traces of rayon fibres. It also ceased supply of the incorrectly labelled blankets and withdrew remaining stock from the market.
Aussino agreed to publish corrective notices in daily newspapers in each State and Territory within Australia in which the quilts and blankets have been sold. The notice will advise consumers that the quilts and blankets had been incorrectly labelled and contained some polyester and traces of rayon in respect of the blankets. The notice will also draw attention to the correct care labelling instructions. Aussino will offer a full refund to all consumers who are dissatisfied with their quilts or blankets.
Aussino has also agreed to upgrade its quality control program and incorporate a trade practices/mandatory standards compliance training program for relevant Aussino staff.
"Aussino's claim that the quilt was '100% Pure Cotton' is an absolute claim clearly conveying that the product was made entirely from cotton", ACCC Chairman, Mr Graeme Samuel, said today. "Such claims have a significant influence on a consumer's purchasing decision.
"Consumers are entitled to expect such claims are correct and truthful".
"The prompt corrective action taken by the company would have incurred significant costs", he said. "This should serve as a warning to companies which manufacture or source products overseas, particularly in large volumes, of the need to have stringent quality control mechanisms in place to ensure any representations made in relation to the products supplied in Australia are correct".
