Saint-Gobain Abrasives Pty Ltd is changing the labelling on a number of its coated abrasive products to remove the words 'Australian Made', after concerns raised by the Australian Competition and Consumer Commission.
Saint-Gobain manufactures and supplies coated abrasive products under the Norton, Flexovit and Carborundum brands.
Six Norton branded sanding disks for metal were labelled 'Australian Made' and had a map of Australia. The disks are attached to angle grinders and used for sanding applications on metals.
Saint-Gobain imports the coated abrasive cloth which is cut into disks and packaged at its Lidcombe, New South Wales plant before sale.
Under the Trade Practice Act 1974, to be able to claim that a product is Made in Australia, the product must have been substantially transformed in Australia and
50 per cent or more of the costs of production must have been incurred in Australia.
Saint-Gobain has acknowledged the ACCC's concerns that the work performed in Australia does not constitute a substantial transformation, placing Saint-Gobain at risk of breaching the Trade Practices Act.
"Saint-Gobain's claim that the discs were Australian Made clearly conveyed that the products were substantially transformed in Australia", ACCC Chairman, Mr Graeme Samuel, said today. "As many consumers choose particular brands because they are seeking Australian made products, such claims can have a significant influence on a decision to buy. Consumers are entitled to expect that claims about the country of origin of goods are correct and truthful".
Saint-Gobain has provided court enforceable undertakings to the ACCC. Saint-Gobain will:
- refrain from making false and misleading representations in relation to the country of origin of the six Norton products
- publish corrective notices in major daily newspapers and point of sale notices offering refunds to customers who purchased the products in the belief they were made in Australia
- implement a trade practices compliance program to ensure Saint-Gobain's future conduct does not contravene the country of origin provisions of the Trade Practices Act.