Nupak gives undertaking to court regarding 'Goody' plastic bags
At a directions hearing in the Federal Court today, Nupak Australia Pty Ltd gave interim undertakings to cease making representations regarding 'Goody' plastic bags.
The undertakings were offered as a result of legal action by the Australian Competition and Consumer Commission.
The ACCC alleges that Nupak and Goody Environment Pty Ltd engaged in misleading and deceptive conduct and made false representations by claiming that 'Goody' plastic bags were biodegradable and compostable in accordance with the Australian Standard* and could be legally supplied in South Australia.
The ACCC sought interlocutory orders requiring Nupak and Goody to cease such representations. It also sought orders for Nupak to send letters to its customers advising of the ACCC's action and the court orders.
In response, Nupak has undertaken to refrain from making representations to the effect that 'Goody' plastic bags:
comply with the Australian Standard*;
comply with the requirements of State Legislation which proscribes the sale of plastic 'singlet' shopping bags; or
are biodegradable or compostable in accordance with the Australian Standard,
unless Nupak has first obtained independent scientific testing which substantiates such representations.
Nupak has also undertaken to send a letter to each Nupak customer supplied with Goody plastic bags informing them of the ACCC's action, the allegations and the undertakings by Nupak.
The interim undertakings offered by Nupak are in place until further orders are made.
The hearing of the ACCC's application for interlocutory relief against Goody Environment has been set down for 23 August 2010.
*Australian Standard AS4736-2006 for Biodegradable plastics suitable for composting and other Microbial Treatment.
