EXPLANATORY STATEMENT
Consumer Protection Notice No. 10 2008
Issued by the Authority of the Minister for Competition Policy and Consumer Affairs
Trade Practices Act 1974
Consumer Product Safety Standard – Trolley Jacks
Subsection 65E(1) of the Trade Practices Act 1974 (the Act) provides that the Minister may, by notice in writing, declare that, in respect of goods of a kind specified in the notice, a particular standard, or a particular part of a standard, prepared or approved by Standards Australia, with additions or variations specified in the notice, is a consumer product safety standard for the purposes of section 65C.
Paragraph 65C(1) of the Act provides that a corporation shall not, in trade or commerce, supply goods that are intended to be used, or are of a kind likely to be used, by a consumer, if the goods are of a kind in respect of which there is a consumer product safety standard and they do not comply with the standard.
This instrument (Consumer Protection Notice No. 10 2008) revokes the previous Consumer Product Safety Standard for Trolley Jacks (Consumer Protection Notice No. 4 of 1997) and declares the Australian/New Zealand Standards for Hydraulic Trolley Jacks (AS/NZS 2615:1995 and AS/NZS 2615:2004), as varied, to be a Consumer Product Safety Standard for the purposes of section 65C. The purpose of the safety standard is to ensure that trolley jacks have key safety features that address the product’s known safety hazards and so reduce the associated risk of injury.
The Australian/New Zealand Standard specifies safety requirements relating to the design, construction, and performance of trolley jacks, together with instructions and warnings for their use.
The Consumer Product Safety Standard adopts only those parts of the Australian/New Zealand Standard considered necessary to address the critical safety hazards of the product, and comprises requirements that include performance requirements, markings and directions for safe use, and construction requirements. Clauses of this Australian/New Zealand Standard that are not considered primary safety requirements have not been included in the Consumer Product Safety Standard.
A Regulation Impact Statement (RIS) for this Consumer Product Safety Standard is at Attachment 1. This mandatory standard has been reviewed concurrently with the mandatory standard for vehicle support stands because they relate to products used together in vehicle maintenance. The RIS identifies the product safety issues and considers the options for addressing those issues. The case is presented for updating the mandatory safety standards for both vehicle support stands and trolley jacks, and the rationale for the content of the new standards is explained.
A draft RIS was circulated for consideration by interested parties including manufacturers and suppliers of trolley jacks, State and Territory Fair Trading/Consumer Affairs agencies, consumer groups and testing bodies. Comment received supported the proposed update of the mandatory standard and supported the variations from the voluntary Australian/New Zealand Standard. Consultation proceedings are reported in the RIS.
This Consumer Product Safety Standard is a legal instrument for the purposes of the Legislative Instruments Act 2003.
The Consumer Product Safety Standard commences on the day after it is registered on the Federal Register of Legislative Instruments, but in order to allow a reasonable period of time for suppliers to ensure that all stock complies with the new safety standard, a choice between the current and the new product safety standards is available until 31 July 2009. From 1 August 2009 only the new Consumer Product Safety Standard for Trolley Jacks will apply.
Overview
The Trade Practices Act 1974 was enacted by the Parliament of Australia to regulate trade and commerce and prevent anti-competitive behaviour, among other objectives. Consumer Protection Notice No. 10 of 2008, issued under the authority of the Minister for Competition Policy and Consumer Affairs, addresses the need to ensure the safety of consumer products by updating and replacing the previous Consumer Product Safety Standard for Trolley Jacks, which was established under Consumer Protection Notice No. 4 of 1997. The policy objective of this notice is to mandate the adoption of the Australian/New Zealand Standards for Hydraulic Trolley Jacks (AS/NZS 2615:1995 and AS/NZS 2615:2004), as varied, to mitigate the known safety hazards associated with trolley jacks, thereby reducing the risk of injury to consumers. This safety standard incorporates specific requirements for the design, construction, and performance of trolley jacks, alongside instructions and warnings for safe use, ensuring that the critical safety features are met while allowing flexibility in non-safety related aspects of the standard.
Scope and Application
The Consumer Protection Notice No. 10 2008, issued under the Trade Practices Act 1974, applies to corporations that engage in trade or commerce involving the supply of trolley jacks intended for consumer use. This Act mandates that such corporations must ensure the trolley jacks they supply comply with a specified consumer product safety standard, which aims to mitigate known safety hazards associated with the product, thereby reducing the risk of injury. The standard declared under this notice is the Australian/New Zealand Standards for Hydraulic Trolley Jacks (AS/NZS 2615:1995 and AS/NZS 2615:2004), as varied, and encompasses requirements for the design, construction, performance, and safe use of trolley jacks. This legislation has a national reach across Australia, affecting all entities involved in the supply chain of trolley jacks to consumers. The Consumer Product Safety Standard is legally binding under the Legislative Instruments Act 2003, and while it came into effect post its registration, suppliers were given a grace period until 31 July 2009 to transition to the new standard, after which only the updated safety standard applied.
Key Provisions
The Consumer Protection Notice No. 10 2008, under the Trade Practices Act 1974, revokes the previous Consumer Product Safety Standard for Trolley Jacks and introduces a new standard, declaring the Australian/New Zealand Standards for Hydraulic Trolley Jacks (AS/NZS 2615:1995 and AS/NZS 2615:2004), as varied, to be the new Consumer Product Safety Standard (sections 1 and 2). This new standard is designed to ensure that trolley jacks have key safety features to mitigate known safety hazards, thus reducing the risk of injury. The standard adopts only those parts of the Australian/New Zealand Standard considered necessary to address the critical safety hazards of the product. These requirements encompass performance requirements, markings and directions for safe use, and construction requirements. Clauses from the Australian/New Zealand Standard that are not considered primary safety requirements have not been included in the Consumer Product Safety Standard.
The new standard imposes obligations on corporations to ensure that trolley jacks supplied in trade or commerce comply with the Consumer Product Safety Standard. Specifically, a corporation shall not supply goods intended for consumer use if they are of a kind in respect of which there is a consumer product safety standard and they do not comply with the standard (section 65C(1)). This requirement aims to ensure that all trolley jacks supplied to consumers meet the safety requirements set out in the standard.
Breach of the Consumer Product Safety Standard can have significant consequences. Under the Trade Practices Act 1974, any corporation found supplying non-compliant goods can face civil penalties. The maximum penalty for each offence is substantial, reflecting the seriousness of non-compliance with consumer safety standards. Additionally, the supply of non-compliant goods can lead to consumer complaints, potential recalls, and reputational damage for the corporation. It is important for corporations to be aware of their obligations under the new Consumer Product Safety Standard to avoid these potential consequences.