ACCC serves warning on souvenir t-shirt industry

Following investigations into various t-shirt importers, the Australian Competition and Consumer Commission has issued a warning to the souvenir industry to comply with country of origin labelling rules.

ACCC Chairman, Mr Graeme Samuel, said the practice of attaching a 'Made in Australia' label to an overseas made garment was of particular concern.

"Manufacturers and importers of t-shirts for the tourism and souvenir markets are warned against changing labels or adding labels which claim garments are 'Made in Australia', where in fact the t-shirts are made overseas.

"If embroidery or screen printing is added to a t-shirt in Australia, but the garment itself was not made here in Australia, then it is misleading to attach a 'Made in Australia' label", Mr Samuel said.

Following the investigations, AAA Embroidery & Screen Printing Pty Ltd (AAA) admitted it added embroidery and screen printing to imported t-shirts and labelled the garment as made in Australia. The ACCC considers that AAA was likely to have breached the Trade Practices Act 1974 by misrepresenting that the t-shirts were 'Made in Australia'.

AAA Embroidery & Screen Printing Pty Ltd cooperated with the ACCC and has given court-enforceable undertakings that it will:

• not represent that goods are 'Made in Australia' unless it has first established that the goods meet the defence test for country of origin claims set out in section 65AB of the Act*
• remove false country of origin claims from all goods it currently has in stock
• advise resellers of its incorrectly labelled t-shirts, that the garments are not 'Made in Australia', and instruct retailers to remove and/or stop such representations
• undertake trade practices law training for its directors, and
• implement an education program for company staff on issues relating to country of origin.

"This serves as a warning to others in the industry who may be tempted to amend labels in order to promote their product as an 'authentic' Australian souvenir.

"The ACCC is keen to see this conduct stopped and to ensure compliance with the Act", Mr Samuel said.

Background

*Earlier this year the ACCC published a revised edition of its 'Country of Origin' leaflet. The leaflet sets out that the Trade Practices Act 1974 prohibits businesses making misleading claims about where goods are made. It also sets out tests which if met will ensure that country or origin labelling or promotions do not breach certain provisions of the Act.

The Act provides for a set of defences for goods that pass certain tests. For example, a representation that goods are made or manufactured in a particular country, the defence will be made out where:

• The goods have been substantially transformed in the country claimed to be the origin, and
• 50 per cent or more of the costs of production have been carried out in that country.