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Designer Direct (SA) Pty Ltd (Designer Direct) proposed a Variation to the section 87B undertaking accepted by the ACCC on 5 October 2007.
The undertaking related to false and misleading down content claims made by Designer Direct for its 'Mahogany Summer' and 'Mahogany Winter' quilts.
The undertaking included a requirement that Designer Direct implement a trade practices compliance program with annual trade practices compliance training to be provided to all officers, employees and other persons involved in Designer Direct's business whose duties could result in them being concerned with conduct that may contravene sections 52, 53(a) and 55 of the TPA.
The annual trade practices compliance training is to be provided by a suitably qualified compliance professional or legal practitioner.
The Variation amends Designer Direct's trade practices compliance training obligation by limiting the category of Designer Direct staff required to receive the annual training to senior staff, namely, "all directors and managers" instead of the broader "all officers, employees and other persons".
Sontax Australia (1988) Pty Ltd (Sontax) carries on business as an importer and wholesale supplier of hardware goods including elastic luggage straps packaged under the Sontax brand.
Between 27 July 2008 and 25 August 2008 Sontax supplied Sontax branded elastic luggage straps packaged as a ’12 PIECE ELASTIC LUGGAGE STRAP ASSORTMENT’ with the product code 91830 (Sontax Straps).
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 (Mandatory 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 Mandatory Standard requires an elastic luggage strap to have permanently attached a label bearing the following warning (Warning Label);
WARNING.
On 12 September 2006 the Australian Competition and Consumer Commission (ACCC) accepted an undertaking given by Black & Decker (Australia) Pty Ltd pursuant to section 87B of the Trade Practices Act 1974. The undertaking requires Black & Decker for a period of 3 years refrain from making any representation to the effect that certain products it supplies are "Australian Made", "Made in Australia" or originate from Australia if that is not in fact the case.
The undertaking also requires Black & Decker to establish and implement a Trade Practices Compliance Program in accordance with the requirements set out in the ‘Annexure A’.
Between late 2006 and September 2008 Black & Decker supplied certain Powerfile sanding belts (the Powerfile belts) in packaging which included the representation ‘Made in Australia’ when in fact those Powerfile belts were made in Germany.
The ACCC is concerned that by representing that the Powerfile belts were ‘Made in Australia’ (the Representation) in circumstances where the Powerfile belts were not substantially the result of manufacturing processes carried out in Australia Black & Decker has engaged in conduct and made representations in breach of sections 52, 53(a), 53(eb) and 55 of the TPA and contravened paragraph 14(a) of the undertaking.
Black & Decker acknowledges acknowledges that by supplying the Powerfile belts with the representation ‘Made in Australia’ when they were not substantially transformed in Australia it has contravened sections 52, 53(a), 53(eb) and 55 of the TPA and paragraph 14(a) of the Undertaking.
In order to address the concerns identified in connection with the supply of the Powerfile belts, Black & Decker has given to the ACCC a variation to the undertaking that:
Extends the period of time (to 4 years) during which Black & Decker is to maintain and implement the trade practices compliance program;
Requires Black & Decker undertake an audit of its domestic suppliers to identify the source (country of origin) of all of the materials used in the manufacture of the products that they supply to Black & Decker.
Requires Black & Decker conduct a review its compliance processes with respect to country of origin statements made on the Products and implement all necessary changes.
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