The Australian Competition and Consumer Commission has accepted a court enforceable undertaking from ATI Enterprise Pty Ltd and its directors after it imported and sold baby cots on its eBay website, Oz-Mall, that failed to comply with the mandatory product safety standard for cots for household use.
In November 2007, as part of its ongoing product safety surveys, the ACCC purchased cots from two internet suppliers and had them tested against the mandatory product safety standard. Following the testing it was found that a cot sold by ATI Enterprise did not comply with the standard.
When tested against the standard, the cot posed concerns in respect of:
- sharp points and/or edges on components of the cot
- protrusions causing potential snag hazards
- entrapment hazards identified within the structure of the cot
- footholds identified which could assist in climbing
- failure to comply with strength and durability tests, and
- the absence of the required informative and warning labels.
Section 65C of the Trade Practices Act 1974 prohibits a corporation from supplying goods that do not comply with a mandatory product safety standard.
Under the undertaking ATI will:
- complete a voluntary recall of the cots sold through the Oz-Mall account
- ensure that products sold through the Oz-Mall account comply with the relevant mandatory product information and safety standards
- publish a corrective notice on its eBay website, and
- implement and maintain a trade practices compliance program with an emphasis on product safety.
"The safety of young children will continue to be of supreme importance to the ACCC," ACCC Chairman, Mr Graeme Samuel, said today. "All suppliers, including those who trade exclusively via the internet, have a responsibility to ensure that any goods supplied comply with the relevant mandatory product safety standards.
"The ACCC will continue to monitor suppliers with random surveys, and where significant breaches are identified, will take court action. Suppliers of goods which fail to comply with the mandatory product safety standards could face penalties of up to $1.1 million for companies and $220,000 for individuals."
Mr Graeme Samuel, Chairman, (02) 6243 1131 or 0408 335 555
Ms Lin Enright, Media, (02) 6243 1108 or 0414 613 520
Release # MR 075/08
Infocentre 1300 302 502