By Graeme Samuel, Chairman of the Australian Competition and Consumer Commission
Today's stores, including convenience stores, are selling a much larger range of products than in the past. As the range of products increases it is vital that managers and staff are up-to-date on product safety regulations to avoid injury to consumers and possible liability claims, and to maintain the reputation of the business.
In Australia each year there are around 650,000 accidents involving consumer products. Many are avoidable and strategy is not only to make products safer but to label them correctly for safe use. The responsibility for safety is not just the role of manufacturers, importers and distributors - retailers and hirers are also involved.
The ACCC is responsible for administering 26 mandatory safety and information standards and 13 ban orders covering such products as disposable cigarette lighters, sunglasses & fashion spectacles and elastic luggage straps.
All suppliers - including manufacturers, importers, distributors, hirers and retailers - are responsible for ensuring that goods they supply comply with the relevant mandatory standards. When ordering goods, retailers should stipulate that they comply with standards and check on delivery to ensure standards have been met.
Here is a cautionary tale about retailing and safety. Dimmeys Stores Ltd was fined $60,000 for selling children's bicycles not complying with safety standards. It was the first time Dimmeys had stocked bicycles - buying them from an importer who had not previously imported them. Both parties had failed to make the proper inquiries about safety. The bicycles were withdrawn from sale, recall notices were published for those already sold and the ACCC's legal expenses were paid.
Over recent times the ACCC has cracked down on companies supplying car jacks without a permanent and legible warning "do not get under a vehicle that is supported only by a jack: use vehicle support stands".
Media reports on injuries from unsafe products are bad for business. People who suffer injury or loss because of a defective product can take legal action for compensation. The Trade Practices Act 1974 allows anyone to claim for personal injury or damage to private property because of a product defect.
Manufacturers, importers and retailers need to include safety compliance costs when setting margins and avoid short cuts on safety to undercut competitors' prices. Remember that apart from the ACCC taking action against businesses for breaching safety standards, consumers can seek compensation through the courts for personal injury or other losses caused by a defective product.
The ACCC conducts random surveys of retail outlets throughout Australia to detect banned products and others that don't match safety standards.
In one survey the banned product mini-cup jellies (it contained konjac, a thickening agent that when used in a product of this size, is a potential choking hazard) were found in Perth and legal action was taken against Trans Oriental Import and Export Pty Ltd for breaching the Trade Practices Act. Small numbers of mini-cup jellies were found in Melbourne and Adelaide and the ACCC ensured the product was withdrawn from sale and recall notices placed in stores.
Following the purchase of three pairs of $10 sunglasses at a Brisbane shopping centre the ACCC had them tested and they failed to meet safety standards. The retailer withdrew the sunglasses from sale and the supplier Sova Imports ceased supply and withdrew remaining sunglasses from sale. The message to suppliers of sunglasses and fashion accessories is that the products must comply with safety standards, even in the case of budget-priced items.
Information on product safety and liability can be found on the ACCC's website at www.accc.gov.au. The publication Consumer Product: Standards and Bans can be obtained by calling the ACCC Infoline on 1300 302 502.