The Australian Competition and Consumer Commission has accepted a court enforceable undertaking from Ausia Australia Pty Ltd and its directors after concerns that it had sold baby cots and baby walkers on its eBay website, Oz-Auction, that may not have complied with mandatory product safety standards.
Under the undertaking Ausia will:
- complete a voluntary recall of the baby walkers and cots it sold through the Oz-Auction account
- publish disclosure notices alerting parents to the dangers of buying products for children that do not meet product safety standards and reminding manufacturers/retailers of their obligations, and
- implement and maintain a trade practices law compliance program for three years and three months.
"Compliance with the undertaking is likely to cost Ausia about $200,000, plus the cost to its reputation in the ecommerce market," ACCC Chairman, Mr Graeme Samuel, said today. "Further the company has lost a substantial amount of time in dealing with the matter – time that could have been better used to grow its business.
"The ACCC will continue to be vigilant to ensure mandatory product safety standards are met. It will not excuse small traders or those that operate exclusively through online trading forums," Mr Samuel said. "Courts can impose substantial penalties for such breaches.
"In late 2006 the small trader Skippy Australia Pty Ltd was referred by the ACCC to the Commonwealth Department of Public Prosecution for prosecution for supplying baby nursery products that contravened mandatory safety standards. The Federal Court fined Skippy Australia Pty Ltd $500,000 on two offences relating to the baby walkers and a further $350,000 for the supply of a baby cot that was represented as complying with mandatory safety standards. Skippy sold its products both online and also from its warehouse."
The following products which may be used by children are covered by mandatory product safety and information standards: babies' dummies; baby bath aids, baby walkers, balloon-blowing kits, basketball rings and backboards, bean bags, bicycles, bicycle helmets, bunk beds, care labelling (clothing and textile products), child restraints for motor vehicles, children's nightwear, cots for household use, floatation toys and swimming aids for children, paper patterns for children's nightwear and toys for children (36 months and under).
The Ausia undertaking will be available from the ACCC's website, under Public Registers.