Undertaking date

Undertaking type

s.87B undertaking

Reference number

D09/576

Section

ss. 52, 53(a) & 65D

Company or individual details

  • Name

    Mildon Pty Ltd trading as Challenge International (AUST)

    ACN

    074 470 769

Undertaking

Mildon Pty Ltd, trading as Challenge International (Aust) (Challenge International) is an importer of cosmetic products which it supplies to wholesalers and retail outlets throughout Australia.

During the period from March 2003 to October 2008, Challenge International supplied a range of toothpaste and mouthwash products under the Tri Leaf and Natural Bliss brand names.

Ten such products (‘the products’) were not labelled in accordance with the Cosmetics Standard, in that:

  • all of the ingredients (including colour additives) of the products were not listed on the products or their packaging; and/or
  • the ingredients of the products were not listed in correct order by volume or mass on the products or their packaging; and/or
  • chemicals were listed as active ingredients on the packaging of the products when the products did not contain those chemicals.

Challenge International has acknowledged that the products failed to comply with the Cosmetics Standard and that by supplying the products Challenge International is likely to have contravened section 65D of the Trade Practices Act 1974 (‘the Act’).

Challenge International has also acknowledged that it may have misled and deceived consumers in breach of sections 52 and 53(a) of the Act.

Challenge International has offered the ACCC a section 87B Undertaking that it will:

  • not supply cosmetic products which do not comply with the Cosmetics standard;
  • not supply toothpaste products that do not comply with any applicable prescribed consumer product safety standard or in respect of which a relevant ban applies;
  • put in place procedures to ensure that, when supplying cosmetic products, it complies with prescribed consumer product safety standards and prescribed consumer product information standards; and
  • develop and implement a trade practices compliance program which includes trade practices compliance training for relevant staff and a corporate complaints handling system to ensure similar potential breaches of the Act do not occur in the future.