Brilliant Signs Pty Ltd - s.87B undertaking

Brilliant Signs Pty Ltd carries on business as a hardware wholesaler which includes the wholesaling of elastic luggage straps.

On 31 August 2007 Brilliant Signs supplied certain SSA branded elastic luggage straps to one of its customers for retail sale to consumers.

This was the only occasion on which Brilliant Signs supplied the SSA branded elastic luggage 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 (the 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 standard requires an elastic luggage strap to have permanently attached a label bearing the following warning (the Warning Label);

WARNING. Avoid eye injury. DO NOT overstretch. ALWAYS keep face and body out of recoil path. DO NOT use when strap has visible signs of wear or damage.

The purpose of the Warning Label being permanently attached to an elastic luggage strap is to warn the user of the risk of serious injury, including injury to the eyes, from recoil associated with its use.

The TPA prohibits the supply by a corporation of an elastic luggage strap that does not comply with the standard.

The ACCC was of the view the Warning Label was not permanently attached to the SSA branded elastic luggage straps as it was made of paper and easily tore away and would readily perish through use and exposure to the elements.

Brilliant Signs acknowledges by supplying the SSA branded elastic luggage straps it has contravened section 65C of the TPA.

In resolution of the matter Brilliant Signs has given to the ACCC an undertaking under section 87B of the TPA which requires it establish and implement a Trade Practices Compliance Program designed to minimise the risk of future breaches of section 65C of the TPA.