Fox Symes & Associates Pty Ltd, Tim Maher, Deborah Southon & Fox Symes Debt Relief Services Pty Ltd v ACCC
The ACCC is currently involved in proceedings against Fox Symes & Associates (Fox Symes), Tim Maher and Deborah Southon in relation to alleged misleading conduct, misrepresentations and unconscionable conduct (see News centre).
On 12 October 2005, Fox Symes & Ors filed a cross-claim against the ACCC in the Federal Court of Australia. The cross-claim alleges that the ACCC has defamed the cross-applicants in its media release and other publications.
Trade Practices (Consumer Product Information Standards) (Tobacco) Regulations 2005
Amendments to the Trade Practices Act mandatory standard on tobacco products came into force on 11 October 2005. The amendments help the implementation of the new mandatory labelling regime provided for in Part 4 of the standard, which establishes a new regime of graphic health warnings.
The requirements for the new graphic warnings apply to tobacco products that are manufactured or imported on or after 1 March 2006. Use of the new labelling will be permitted before then, however, and consumers can anticipate that some product lines with the new labelling will be appearing on supermarket shelves over the next few months.
The new health warnings measures include:
A new set of 14 health warnings comprising graphic images and explanatory messages which cover 30 per cent of the front and 90 per cent of the back of the pack, with graphics to appear on both the front and back of cigarette packets.
Inclusion of the national Quitline number and website address on the back of packs to provide a contact for smokers for assistance with quitting.
A new rotation system for health warnings to optimise consumer learning and awareness of the health effects of smoking. This involves the rotation of each set of seven warnings alternatively, every 12 months. Warnings are also rotated within brands over each 12-month period.
Removal of the requirement for manufacturers to list average levels of tar, nicotine and carbon monoxide yields on the side of packs. Instead a qualitative information message on the health effects of chemicals in tobacco smoke will be required on the side of the packs. This change will highlight that there is no safe cigarette.
A set of cigar-specific health warnings to be displayed on cigar packaging to increase the awareness of consumers of the health risks of smoking cigars.
Keeping baby safe: ACCC publication aids families
A publication to help families choose safe nursery furniture and equipment for their infants Keeping Baby Safe has been issued by the ACCC. In launching the booklet at the Society of
Compliance Professionals annual conference in Brisbane on 14 October ACCC Chairman, Mr Graeme Samuel said:
Accidents with nursery furniture and equipment cause one in five injuries to babies in their first year of life. Prams and strollers, high chairs, baby walkers, bouncinettes, change tables and cots have all been linked to child injuries, while cots, prams and strollers have been associated with child deaths.
Mr Samuel said the booklet reminded parents and other carers that hazards changed as a baby developed.
There were three key safety rules when dealing with nursery furniture and equipment:
follow the advice on product warning labels
use products according to the manufacturer's instructions and their intended use
check products for wear and tear.
The booklet describes individual types of nursery equipment and furniture, with comments specific to their selection, use and safety.
Mr Samuel said the ACCC is also currently working on a review of the mandatory standard for children's cots.
Copies of Keeping Baby Safe and related publications, are available from all ACCC offices in capital cities and Townsville, from the ACCC website, or from the ACCC Infocentre 1300 302 502.
A new mandatory safety standard and safety education campaign has been introduced to help keep children safe from falling basketball hoops and debris.
The Trade Practices (Consumer Product Safety Standard) Basketball Rings and Backboards) Regulations 2005: a new Trade Practices Act mandatory standard requiring all basketball rings and backboards to carry a safety warning came into force on 11 October 2005. The standard, and an associated safety education campaign, were introduced in response to three deaths and numerous injuries caused by the collapse of structures supporting basketball rings.
The Hon Chris Pearce MP, Parliamentary Secretary to the Treasurer, launched the safety standard and consumer awareness campaign at the Australian Institute of Sport on Monday 10 October 2005. He advised that the new mandatory standard requires that a warning notice and symbol be displayed at the time of sale of a basketball ring and backboard. A warning that swinging on the ring may cause serious injury or death must also be permanently fixed to the backboard.
The safety education campaign is intended to raise awareness of the safe use, installation and maintenance of basketball rings and backboards, and includes a printed safety alert brochure and poster. The key messages of the campaign are to:
install a basketball ring and backboard safely
ideally, fix the basketball ring and backboard to a 'hot dip' galvanised steel post
remove unsafe basketball rings and backboards installed on brick walls
tell children to never hang or swing on the basketball ring
check the condition of an existing installation, and consult a structural engineer if you have any doubt about the safety or stability of the installation.
Copies of the Safety alert: basketball rings and backboards are available on the ACCC website, from ACCC offices throughout Australia and the ACCC Infocentre on 1300 302 502.
Supplier responds to ensure bicycle safety
A bike-importing company, Classic Bicycles Pty Ltd, which imports 3G branded bicycles (Party time, Prime Time and Show Time models), recently withdrew from sale bicycles that did not meet the mandatory safety standard. Classic Bicycles also agreed to supply all owners of 3G bicycles free handlebars that meet the safety standard.
The company’s action was in response to a recall of potentially unsafe 'retro' style bicycles ordered by the ACCC.
A market survey by the ACCC of retro style bicycles, sold under various names including chopper, cruiser, and low-rider found bicycles that breached the mandatory safety standard and were potentially dangerous.
Breaches found included:
the absence of front brakes
the handlebar exceeding allowable width
the height between seat and handlebar exceeding allowable depth
the length of the frame causing uneven and dangerous distribution between front and back wheels and potential instability.
The ACCC met with representatives of Retail Cycle Traders Australia and Bicycle Industry Australia to discuss retro style bicycles. Both organisations agreed to reinforce with their members the need to comply with the mandatory standard.
ASIC, ACCC promote fair debt collection practices
On 14 October 2005 the ACCC and Australian Securities and Investments Commission (ASIC) jointly published Debt collection guideline: for collectors and creditors and, for consumers, Debt Collection: your rights and responsibilities. The aim is to improve standards in the debt collection industry and help consumers deal with debts and debt collection.
During the launch of the publications at the national conference of the Australian Institute of Credit Management on the Gold Coast ASIC Commissioner, Professor Berna Collier, commented:
Many thousands of debts are collected each year in Australia, in most cases, lawfully. But unfortunately, on some occasions debt collectors go beyond what is reasonable and mislead, harass or act abusively towards consumers.
ACCC Deputy Chair, Ms Louise Sylvan, said:
Both the guideline and the consumer brochure stress that contact between a debt collector and a consumer must be necessary, and for a reasonable purpose. We have provided specific recommendations on the appropriate frequency of face-to-face, telephone and other contact, as well as guidance regarding the appropriate location of face-to-face contact. Both publications will also help financial counsellors and other advisers who assist consumers with debt queries or problems.
A debt collector who breaches the harassment and coercion provisions of the Commonwealth consumer protection laws risks fines of up to $220 000 for individuals or $1.1 million for a corporation. Similar fines are risked if a collector is convicted of knowingly making false or misleading representations (criminal prosecution).
Apart from criminal sanctions, ASIC or the ACCC can seek civil court orders against a collector, including injunctions against future conduct and non-punitive orders, such as corrective advertising.
