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Section 87B undertakings

Louise Dalgish Smith

Cinnamon Bear is a garment importer and distributor, supplying retailers throughout Australia.

Recently, Cinnamon Bear supplied a number of Babylicious baby sleeping bags in Australia with attached fire hazard warning labels that did not comply with the relevant mandatory product safety standard for children's nightwear (AS/NZS 1249: 2003).

Cinnamon Bear has provided court-enforceable undertakings to the ACCC that it will:

  • in future not supply or offer for supply any children's nightwear that does not fully comply with the prescribed consumer safety standard
  • ensure that the correct warning labels as per the standard are printed and attached to any non-compliant baby sleeping bags in the possession of Cinnamon Bear
  • ensure that it will make the appropriate fire hazard labels available to any consumers who wish to have their baby sleeping bags relabelled
  • publish a corrective notice
  • establish a trade practices compliance program.

See ACCC media release of 23 October 2007: ACCC accepts Cinnamon Bear product safety undertakings

See ACCC public register entry: Louise Dalgish Smith

Overstockoutlet Pty Ltd

Overstockoutlet Pty Ltd (ACN 099 229 553) is an online supplier of a wide range of products that it retails directly to consumers through its online store, www.oo.com.au.

As part of its product range, Overstockoutlet imported and distributed a Freestyle 51cm steel frame bicycle. Pedal bicycles are subject to a prescribed consumer product safety standard (AS/NZS 1927: 1998). Independent testing commissioned by the ACCC revealed the bicycles failed to stop in the required distance and did not have the required safety warnings. The ACCC was also concerned that the description promoting the bicycle as being suitable for freestyle riding when it was labelled as being unsuitable for stunt riding may be misleading. On being advised of the test results Overstockoutlet withdrew the bicycles from sale.

On 15 October 2007 Overstockoutlet provided court-enforceable undertakings to the ACCC that it will:

  • not supply bicycles that do not comply with any prescribed consumer product safety standards in force at the time
  • not promote a bicycle as being suitable for freestyle or trick riding when it is labelled as being unsuitable for stunt riding
  • withdraw the bicycles from sale.

See ACCC media release of 17 October 2007: Online retailer Overstockoutlet recalls freestyle bicycles after ACCC action

See ACCC public register entry: Overstockoutlet Pty Ltd

Designer Direct (SA) Pty Ltd

Designer Direct (SA) Pty Ltd, retailer of its own-brand 'Mahogany Summer' and 'Mahogany Winter' quilts, has acknowledged that the 50 per cent duck down content claims that it made for these quilts were false and liable to mislead consumers in likely contravention of the Trade Practices Act.

On 5 October 2007 Designer Direct has provided to the ACCC a court-enforceable undertaking that it will:

  • offer refunds to consumers who purchased a 'Mahogany Summer' or 'Mahogany Winter' brand quilt represented to contain 50 per cent down
  • refrain in future from making any down content claims for its 'Mahogany Summer' or 'Mahogany Winter' or other own-brand down products unless the claims can be substantiated by independent testing on its finished down products where the manufacturing process has been completed
  • implement a trade practices compliance program for Designer Direct employees and other persons involved in its business.

See ACCC public register entry: Designer Direct (SA) Pty Ltd

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