The Australian Competition and Consumer Commission has today issued guidelines on the country of origin claims made by the furnishing industry.
Country of origin claims were identified as a priority under the Furnishing Industry Action Agenda. The agenda's is being overseen by the Parliamentary Secretary to the Minister for Industry, Tourism and Resources, Mr Warren Entsch .
Mr Entsch will formally launch the guidelines at the Furnishing Industry Summit in Sydney on Friday, 28 March.
The guidelines will assist furnishing manufacturers, wholesalers and retailers who want to make country of origin claims within the provisions of the Trade Practices Act 1974.
"The publication of the guide is an important part of the ACCC's broad industry compliance and education program relating to country of origin representations", Ms Jennifer McNeill, ACCC Commissioner responsible for consumer protection, said today.
A working party, led by the ACCC, including representatives from the Furnishing Industry Association of Australia (FIAA) and the Department of Industry, Tourism and Resources, produced the guidelines. The working party undertook extensive research and worked with several furniture and furnishing companies to ensure that the guide addressed processes and issues specific to the furnishing industry.
The guide is the fourth in a series of six ACCC publications for industry. These guides have been successful in raising awareness of the country of origin provisions of the Act and are designed to ensure that consumers and industry have a similar understanding of what is meant by 'Made in …' and 'Product of…' claims. More specifically, the guides assist different industries to ensure that they comply with the Act's country of origin rules and provide guidance as to the ACCC’s interpretation of defences set out in Part V, Division 1AA of the Act.
"Division 1AA sets out what characteristics the goods must have to ensure that a claim about the country of origin does not amount to misleading and deceptive conduct under the Act", Ms McNeill said.
The 'Made in Australia' defence, in Division 1AA, has two components:
- The goods must have been substantially transformed in the country claimed to be the origin; and
- 50 per cent or more of the cost of production must have been carried out in that country. The 'Product of Australia' defence has two rigorous criteria which must be met:
- The country of the claim must be the country of origin of each significant component of the goods; and
- All, or virtually all, processes involved in the production or manufacture must have happened in that country.
The Furnishing Industry – Country of Origin guidelines to the Trade Practices Act will be available on the ACCC website, or by contacting the ACCC Publishing Unit on (02) 6243 1143. Paper copies of the guide will also be distributed by FIAA and ACCI to industry members. There is no charge for the guide.