Mark Cameron Hawkins & merin Susanne Hawkins & Medalist (Victoria) Pty Ltd - s.87B undertaking

Mark Hawkins, Merin Hawkins and Medalist (Victoria) Pty Ltd carry on business in partnership (the Medalist partnership) as a wholesale supplier of hand tools to the retail hardware and nursery industries.

Between 18 July 2007 and 22 August 2008 the Medalist partnership supplied certain Medalist branded elastic luggage straps (the Medalist straps) to its retail customers.

The Australian Competition and Consumer Commission (ACCC) is responsible for ensuring compliance with prescribed consumer product safety standards under the Trade Practices Act 1974 (TPA).

There is a prescribed consumer product safety standard for elastic luggage straps (the standard) that applies to an elastic strap or cord having a hook, buckle or other fastening device at each extremity and which is designed to be used for the purpose of securing luggage or other objects.

The standard requires an elastic luggage strap to have permanently attached a label bearing the following warning (the Warning Label);

WARNING. Avoid eye injury. DO NOT overstretch. ALWAYS keep face and body out of recoil path. DO NOT use when strap has visible signs of wear or damage.

The purpose of the Warning Label being permanently attached to an elastic luggage strap is to warn the user of the risk of serious injury, including injury to the eyes, from recoil associated with its use.

The TPA prohibits the supply by a corporation of an elastic luggage strap that does not comply with the standard.

The Warning Label attached to the Medalist straps was made of an adhesive paper that easily tore away and would readily perish through use and exposure to the elements.

Having regard to the material composition of the Warning Label attached to the Medalist straps the ACCC was of the view it was not permanently attached as required by the standard.

Upon becoming fully aware of the ACCC’s concerns the Medalist partnership ceased supplying the Medalist straps, caused its customers to remove the Medalist straps from sale and to display in store signs to alert their retail customers to the ACCC’s concerns and replaced the Warning Label with one made of non-perishable material.

Mark Hawkins, Merin Hawkins and Medalist (Victoria) Pty Ltd acknowledge by supplying the Medalist straps they have contravened section 65C of the TPA and in resolution of the matter have given to the ACCC an undertaking under section 87B of the TPA which requires they establish and implement a Trade Practices Compliance Program designed to minimise the risk of future breaches of section 65C of the TPA.