Further extension of the ban period for the interim ban on certain decorative alcohol fuelled devices

Overview

The Competition and Consumer Act 2010, enacted by the Commonwealth Parliament, addresses a range of issues concerning consumer protection and fair trading. One specific problem it targets is the regulation of potentially hazardous consumer products, such as certain decorative alcohol-fuelled devices. To address safety concerns related to these devices, the Minister for Small Business imposed an interim ban on certain decorative alcohol-fuelled devices, which was subsequently extended twice. The most recent extension, detailed in F2017L00664, was implemented to allow the Australian Competition and Consumer Commission (ACCC) more time to consider long-term regulatory options aimed at minimising the risk of injury. This legislative instrument further extends the interim ban period by 30 days, to 14 July 2017, without the need for prior consultation due to its minor nature and alignment with existing arrangements.

Scope and Application

The Competition and Consumer Act 2010, through the legislative instrument F2017L00664, extends the interim ban on certain decorative alcohol fuelled devices for a further 30 days, until 14 July 2017. The interim ban, which initially started on 17 March 2017 and was subsequently extended for 30 days on 8 May 2017, targets devices designed for domestic use that produce a flame using alcohol as fuel, primarily for decorative purposes. However, the ban does not apply to devices with a power output exceeding 4.5 kilowatts, those that require installation in a fixed position, those designed for food warming, and devices with a dry weight of at least 8 kilograms, a footprint of at least 900 square centimetres, and equipped with specific safety features such as a removable fuel tank or a flame arrestor. The ban applies nationally across Australia and aims to provide additional time for the Australian Competition and Consumer Commission to evaluate potential long-term regulatory measures to mitigate the risk of injury associated with these devices.

Key Provisions

The explanatory statement outlines the further extension of the interim ban on certain decorative alcohol-fuelled devices under the Competition and Consumer Act 2010 (CCA). Section 109 of the Australian Consumer Law, which is Schedule 2 to the CCA, allows the Minister for Small Business to impose an interim ban on goods that pose a significant risk to public safety. The interim ban initially commenced on 17 March 2017 and was extended twice, with the most recent extension making the ban effective until 14 July 2017. This extension allows the Australian Competition and Consumer Commission (ACCC) additional time to determine if further regulatory measures are necessary to reduce the risk of injury associated with these devices. The Act imposes specific obligations on manufacturers, importers, suppliers, and retailers of decorative alcohol-fuelled devices. These parties must ensure that their devices comply with the interim ban by not supplying, advertising, or promoting any banned devices within Australia. This includes ensuring that the devices do not fall within the specified exclusions, such as those with a power output exceeding 4.5 kilowatts or those requiring installation in a fixed position. Additionally, the devices must display appropriate warnings to alert users of the risks associated with using these products. Failure to comply with the interim ban can result in significant legal consequences. While the Act does not explicitly state penalties for non-compliance with the interim ban, general provisions under the CCA apply. For corporations, breaches can lead to substantial fines, with penalties potentially reaching up to $1.1 million for each offence. Individuals responsible for ensuring compliance may also face penalties, including fines and imprisonment, depending on the severity of the breach. The enforcement of these penalties is overseen by the ACCC, which has the authority to take legal action against entities that fail to comply with the interim ban. Given the public safety concerns associated with decorative alcohol-fuelled devices, the Act underscores the importance of adhering to the regulatory measures in place. The further extension of the interim ban provides the ACCC with the necessary time to evaluate the risks and determine appropriate long-term regulatory strategies. This ensures that the safety of consumers remains a priority while the regulatory framework is being refined.