Cotton Dreams Pty Ltd - s.87B undertaking

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.