Bunnings Group Ltd - s.87B undertaking

The ACCC has accepted a section 87B Undertaking from Bunnings Group Limited, ACN 008 672 179 in respect to the supply of Matchstick roman style indoor blinds (Matchstick Blinds) that did not comply with the relevant mandatory product safety standard as outlined below. The safety standard in force for corded internal window coverings such as the Matchstick Blinds is the Trade Practices (Consumer Product Safety Standard - Corded Internal Window Coverings) Regulations 2010 (mandatory safety standard). In addition to safety warnings that must be attached to blinds inside the packaging, the mandatory safety standard requires that blinds carry a specific safety warning on the retail packaging of corded internal window coverings. The warning must be in red capital letters at least 5mm high on a white background and contain the words:

'WARNING: CURTAIN AND BLIND CORDS HAVE CAUSED THE DEATH OF YOUNG CHILDREN AND MUST BE INSTALLED SO THAT THEY ARE NOT A STRANGULATION HAZARD. FOLLOW THE INSTALLATION INSTRUCTIONS'.

The purpose of the label on the external packaging is to warn consumers prior to purchase of the risk of serious injury to children, including strangulation, and thereby provide those consumers with the opportunity to purchase window coverings that do not present a similar safety hazard. From January 2013 to March 2013 Bunnings sold 3,696 Matchstick Blinds that did not comply with the mandatory safety standard because those Matchstick Blinds did not carry the warning on the external packaging. Upon becoming aware of this issue, Bunnings:

1. immediately withdrew the Matchstick Blinds from sale;
2. made arrangements to ensure that all Matchstick Blinds it offered for sale now comply with the mandatory safety standard;
3. put in place product safety warnings and a returns program for consumers in relation to the relevant Matchstick Blinds at Bunnings stores, and by posting a warning on Bunnings' website for 30 days until 30 June 2013;
4. published a Public Notice in major daily newspapers to alert consumers of the labelling issue and the returns policy; 
5. published a recall notice on the website: www.recalls.gov.au; and 
6. put in place upgraded product safety compliance processes to address what had occurred.

To address the ACCC's safety concerns, Bunnings undertakes for the purposes of section 87B of the Act that:

1. for a period of 3 years it will not, and will ensure that its subsidiaries will not, in trade or commerce supply products in contravention of section 106 of the ACL; and
2. it will amend its Compliance Program and will maintain and continue to implement the Compliance Program for a period of 3 years from the date of this Undertaking coming into effect.