Sontax Australia (1988) Pty Ltd - s.87B undertaking

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. 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 Mandatory Standard.

The Warning Label attached to the Sontax Straps was made of an adhesive paper.

Having regard to the material composition of the Warning Label the ACCC was of the view it was not permanently attached as required by the Mandatory Standard.

Upon becoming fully aware of the ACCC’s concerns Sontax immediately ceased supply of the Sontax Straps, reviewed the Warning Label attached to each variant of the Sontax Straps and undertook a voluntary trade recall of the Sontax Straps from its customers.

Sontax acknowledges that by supplying the Sontax Straps it has contravened section 65C(1)(a) of the TPA.

In resolution of the matter Sontax 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.