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Living Momentum Pty Ltd has provided court enforceable undertakings to the ACCC after bunk beds that it had imported and supplied to consumers did not comply with the requirements of the mandatory product safety standard.
Consumer Protection Notice No.1 of 2003 – Consumer Product Safety Standard – Bunk Beds made pursuant to section 65E of the TPA requires bunk beds supplied in Australia to comply with certain requirements specified in the Australian and New Zealand Bunk Bed Standard AS/NZS 4220:1994.
Testing revealed that the bunk beds that Living Momentum had supplied to consumers did not meet a number of requirements of the mandatory Standard.
The ACCC formed the view that Living Momentum had contravened section 65C of the Trade Practices Act 1974 which prohibits a corporation from supplying goods that are in breach of product safety standards and consumer protection notices.
The ACCC has accepted a section 87B undertaking from Living Momentum to address the matter.
Living Momentum has undertaken to the ACCC that it will:
for a period of 3 years, ensure that goods supplied by Living Momentum that are subject to a prescribed safety and/or information standard under the TPA comply with the relevant standard;
at its own expense, cause to publish an information notice on its website;
display an information notice at the point of sale in its store for a period of no less than 3 months;
contact its customers who purchased the products to offer them the option to repair and modify the bunk bed, or be refunded the cost of the bunk bed and report on this obligation to the ACCC; and
establish and implement and maintain a Trade Practices Compliance Program for 3 years, to minimise the risk of future breaches of section 65C of the TPA and to ensure an awareness of the responsibilities and obligations in relation to the requirements of section 65C of the TPA.
Busby Distribution Pty Ltd, the business that operates Aldo Australia stores in Victoria and New South Wales, has offered a section 87B court enforceable undertaking to the ACCC following its supply to consumers of sunglasses that failed to comply with the mandatory consumer product safety standard prescribed under the Trade Practices Act 1974 (the Act), namely AS/NZS 1067:2003 Sunglasses and fashion spectacles (the Standard).
Specifically, Busby supplied sunglasses that were not labelled with the lens category number and corresponding description.
National Foods proposed the section 87B undertaking (undertaking), in anticipation of ACCC concerns about the impact that the proposed acquisition may have on:
the acquisition of raw milk in central NSW and SA
the NSW and SA markets for the wholesale of fresh white milk
the NSW and SA markets for the wholesale of flavoured milk.
Broadly, the undertaking:
divests two milk processing facilities (Lidcombe NSW and Clarence Gardens SA)
grants licences for a range of National Foods’ and Dairy Farmers' white and flavoured milk brands
transfers/assigns depots and distribution agreements
agrees to supply raw milk for the first 12 months.
The key difference between the approaches in the two states is that in NSW, the licences for fresh white milk will be transferred to the approved purchaser for a period of two years while in SA the licensing arrangement will be perpetual.
The undertaking adequately addresses competition concerns with the acquisition of raw milk and the supply of fresh white and flavoured milk in NSW and SA.
Fairfax Digital Australia and New Zealand Pty Ltd (Fairfax Digital) is the registrant of websites including www.domain.com.au.
During February and March 2008 banner advertisements promoting the Domain mobile phone service were published across Fairfax Digital websites.
The primary purpose of the Domain mobile phone service was to offer users the ability to view and search property listings featured on Domain.com.au from their mobile phone.
The banner advisements and related webpage for the Domian.com.au mobile service indicated that the service was free, when in fact users may have incurred charges from their telecommunications provider.
Furthermore, the advertisements omitted to indicate that, in relation to the optional Domain mobile alert service, users would be charged 55 cents for each SMS alert received.
Fairfax Digital has acknowledged the ACCC’s concerns that the conduct may have mislead consumers in contravention of sections 52 and 53(e) o the TPA.
The ACCC has accepted undertakings from Fairfax Digital under section 87B of the TPA.
Fairfax Digital has undertaken that it will:
not publish any advertisement or promotional information on websites representing that Domain mobile phone services are free, in circumstances where consumers may incur charges or fees when using those services.
cause a corrective notice to be published on the Domain homepage; and
update its Trade Practices compliance program to ensure that it continues to comply with the TPA.
On 22 July 2008, the ACCC accepted the undertaking of Kevin Jaffe, a director of Toll Holdings Ltd ('Toll') and/or its related bodies corporate.
Lincraft Australia Pty Ltd (Lincraft) offered for sale children's bath robes which did not comply with the Children's Nightwear Standard (the standard).
The bath robes were supplied to Lincraft by Cotton Dreams Pty Ltd (Cotton Dreams).
Tests carried out by the Australian Wool Testing Authority indicated that the bath robes did not meet the surface burning requirements or qualify for any one of the four fire hazard categories applicable under the Standard.
Consequently the bath robes should not have been sold.
Further, the bath robes also failed to meet the labelling requirements in respect of numerical sizing and labelling requirements for the placement of the fire hazard warning label.
Lincraft acknowledged that by supplying the bath robes which failed the standard it had engaged in conduct likely to be in contravention of the Act.
When contacted by the ACCC Lincraft and Cotton Dreams undertook corrective action by withdrawing the bath robes from sale, conducting a voluntary recall of the bath robes and placing recall notices in daily newspapers in each state and territory where the bath robes were sold.
Additionally, Lincraft has provided court enforceable undertakings to the ACCC that it will refrain from supplying children's nightwear products that do not comply with the Standard and provide a report to the ACCC detailing the number of bath robes it destroyed and the number of bath robes returned by it to Cotton Dreams for destruction.
Lincraft will also commission an external review of its existing Trade Practices Compliance Program and report to the ACCC the findings of the report and implement a trade practices compliance program which reflects any reasonable and appropriate recommendation made in the report.
Cotton Dreams Pty Ltd (Cottons Dreams) imported, distributed and supplied children's bath robes to Lincraft Australia Pty Ltd (Lincraft) and through its own clearance store in Sydney which did not comply with the Children's Nightwear Standard (the standard).
Tests carried out by the Australian Wool Testing Authority indicated that the bath robes did not meet the surface burning requirements or qualify for any one of the four fire hazard categories applicable under the Standard.
Consequently the bath robes should not have been sold.
Further, the bath robes also failed to meet the labelling requirements in respect of numerical sizing and labelling requirement for the placement of the fire hazard warning label.
Cotton Dreams acknowledged that by supplying the bath robes which failed the standard it had engaged in conduct likely to be in contravention of the Act.
When contacted by the ACCC Cotton Dreams and Lincraft undertook corrective action by withdrawing the bath robes from sale, conducting a voluntary recall of the bath robes and placing recall notices in daily newspapers in each state and territory where the bath robes were sold.
Additionally, Cotton Dreams has provided court enforceable undertakings to the ACCC that
it will refrain from supplying children's nightwear products that do not comply with the Standard
it will destroy all of the bath robes and provide the ACCC with a Certificate of Destruction and;
it will establish and implement a Trade Practices Compliance Program.
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