Bunnings Group Limited - s.87B undertaking

Bunnings Group Limited is a major retailer of home improvement products in Australia.  One of the products sold by Bunnings is a rubber luggage strap known as Quickties Tie Down Strap (Quickties).

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).

The TPA includes such a standard for elastic luggage straps.

An elastic luggage strap is defined in the relevant standard as including an elastic strap or cord having a hook, buckle or other fastening device at each extremity that is designed to be used for the purpose of securing luggage or other objects.

The ACCC is of the view Quickties are an elastic luggage strap.

The relevant standard requires elastic luggage straps 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 the straps is to warn users of the risk of serious injury, including injury to the eyes, from recoil associated with elastic luggage straps.

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

The ACCC was of the view the Warning Label was not permanently attached to the Quickties as it was made of paper and could easily tear away.

Bunnings has an existing trade practices compliance program that includes ensuring products it supplies comply with relevant prescribed consumer product safety standards.

The ACCC was concerned Bunnings may have contravened the TPA by supplying Quickties that did not comply with the relevant standard.

The ACCC was also concerned Bunnings trade practices compliance program failed to detect the Quickties did not comply with the relevant standard.

Upon becoming aware of the ACCC’s concerns Bunnings immediately took steps to cease supply of the Quickties and to ensure it does not supply Quickties until such time as they comply with the relevant standard.

In addition Bunnings together with Timbermate (the supplier of Quickties to Bunnings) published a public safety warning notice in major daily newspapers.

Bunnings has also given to the ACCC an undertaking pursuant to section 87B of the TPA which requires Bunnings conduct a review of the product compliance component of its trade practices compliance program to ensure it is designed to minimise future breaches of section of the TPA.