explanatory STATEMENT
Issued by the Authority of the Parliamentary Secretary to the Treasurer
Competition and Consumer Act 2010
Permanent ban on undeclared knives or cutters in children’s art, craft and stationery sets
Background
Prior to 1 January 2011, a notice declaring goods to be unsafe was made pursuant to subsection 65C(5) of the Trade Practices Act 1974 (TPA) in relation to undeclared knives or cutters in children’s art, craft and stationery sets.
The Trade Practices Amendment (Australian Consumer Law) Act (No.2) 2010 together with the Trade Practices Amendment (Australian Consumer Law) Act (No.1) 2010, amended the TPA to implement a new national consumer law regime known as the Australian Consumer Law (ACL).
The TPA was renamed the Competition and Consumer Act 2010 (CCA) on 1 January 2011. The ACL forms Schedule 2 to the CCA.
Schedule 7 of the Trade Practices Amendment (Australian Consumer Law) Act (No.2) 2010 sets out the transitional matters relating to the commencement of the ACL. Item 2 of Schedule 7 provides that a notice under subsection 65C(5) of the TPA that was in force immediately before the commencement of the ACL takes effect ‘as if’ it were an interim ban imposed under section 109 of Schedule 2 to the CCA, starting on the day of commencement (1 January 2011). Therefore, an interim ban on undeclared knives or cutters in children’s art, craft and stationery sets came into force on 1 January 2011. An interim ban under the ACL exists for a period of 60 days and is able to be extended on two separate occasions by a period of 30 days.
Subsection 114(1) of Schedule 2 to the CCA provides that the Commonwealth Minister may impose a permanent ban on consumer goods of a particular kind if an interim ban exists for those goods, or it appears to the Commonwealth Minister that consumer goods of that kind will or may cause injury to any person or a reasonably foreseeable use (including misuse) of consumer goods will or may cause injury to any person. A permanent ban on undeclared knives or cutters in children’s art, craft and stationery sets is imposed pursuant to subsection 114(1)(a) of Schedule 2 to the CCA.
Permanent ban on undeclared knives or cutters in children’s art, craft and stationery sets
The purpose of the permanent ban on these goods is to ensure ongoing consumer safety by prohibiting the supply of undeclared knives or cutters in packaged children's art, craft and stationery sets. The associated hazard is the risk of laceration and puncture wounds as children have limited experience in handling knives, are physically underdeveloped and lack judgement. As a result, children using toy or novelty knives can suffer accidental injuries that may require surgery.
Under the CCA, a permanent ban on undeclared knives or cutters in children’s art, craft and stationery sets is a legislative instrument for the purposes of the Legislative Instruments Act 2003 (LIA). For the purposes of section 17 of the LIA, consultation has been undertaken both at the time the notice was made under subsection 65C(5) of the TPA and also in January 2011 when the proposed ban notice was published on the internet in accordance with subsection 132(3) of Part XI to the CCA. There are no known suppliers of these banned goods.
This instrument is subject to sunsetting under Part 6 of the LIA. Unless action is taken to defer or exempt it from sunsetting, it is expected to sunset on 1 April 2021. This estimate assumes it is registered on or before 31 March 2011.
Overview
The Competition and Consumer Act 2010 (CCA) was enacted to address issues related to consumer safety and market competition in Australia. The CCA was introduced by the Australian Parliament to replace the Trade Practices Act 1974 and to implement the Australian Consumer Law (ACL) as a unified national consumer protection framework. The CCA aims to ensure that consumers are protected from unsafe products and unfair trading practices, thereby fostering fair competition and protecting consumer interests. Specifically, the Act provides mechanisms for the Commonwealth Minister to impose bans on consumer goods that pose a safety risk, including undeclared knives or cutters in children’s art, craft and stationery sets. This was highlighted by the permanent ban on such items, which was introduced to mitigate the risk of laceration and puncture wounds that children may suffer due to their limited experience and physical development.
Scope and Application
The Competition and Consumer Act 2010 applies to all persons and entities involved in the supply of consumer goods and services in Australia, encompassing both individual consumers and businesses across various industries. This Act includes provisions for the implementation of bans on certain goods that pose a significant risk to consumer safety, such as undeclared knives or cutters in children’s art, craft and stationery sets. The geographic reach of the Act is national, applying across all states and territories in Australia. The Act allows the Commonwealth Minister to impose a permanent ban on goods that have previously been subject to an interim ban, if it is determined that these goods will or may cause injury to consumers due to their reasonably foreseeable use or misuse. The permanent ban on undeclared knives or cutters in children's art, craft and stationery sets is intended to prevent laceration and puncture wounds, as children using such items can suffer accidental injuries that may require surgical intervention. This legislative instrument is subject to sunsetting provisions, meaning it may lapse unless deferred or exempted from sunsetting, with an expected sunset date of 1 April 2021, provided it is registered by 31 March 2011.
Key Provisions
The main operative sections of this legislation are found in Schedule 2 of the Competition and Consumer Act 2010 (CCA), specifically subsection 114(1) of Schedule 2, which allows the Commonwealth Minister to impose a permanent ban on consumer goods that present a safety risk. This particular legislation imposes a permanent ban on undeclared knives or cutters in children’s art, craft and stationery sets, which was initially introduced as an interim ban and subsequently made permanent due to the identified risk of injury to children. The ban is designed to ensure ongoing consumer safety by prohibiting the supply of such items in packaged children's art, craft and stationery sets.
The obligations and requirements imposed by this Act on the parties or entities it governs include compliance with the ban on the supply of undeclared knives or cutters in children's art, craft and stationery sets. Manufacturers, importers, suppliers, and retailers must ensure that these items are not included in any product sets aimed at children. This requirement is intended to prevent the potential hazard of laceration and puncture wounds, which children can suffer when using toy or novelty knives due to their limited experience, physical underdevelopment, and lack of judgement.
The Act also outlines potential offences, penalties, or civil/criminal consequences for breaches of the ban. Under the CCA, the supply of undeclared knives or cutters in children's art, craft and stationery sets is illegal and can lead to enforcement actions. The penalties for breaching this ban may include fines and other civil or criminal sanctions, although specific penalties are not detailed within the explanatory statement. This legislation underscores the importance of adhering to safety standards to protect consumers, particularly children, from preventable injuries.