explanatory Statement
Consumer Protection Notice No. 12 of 2007
Issued by the Authority of the Parliamentary Secretary to the Treasurer
Trade Practices Act 1974
Consumer Product Safety Standards – Child Restraint Systems for use in motor vehicles
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)(a) 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 that standard.
This instrument declares the 1995, 2000 and 2004 versions of the Australian Standard for motor vehicle child restraints AS 1754, as varied, to be consumer product safety standards for the purposes of section 65C. The purpose of these safety standards is to ensure that child restraints supplied on the Australian market have key safety features that reduce the associated risks of injury to/death of a child while travelling in a motor vehicle.
These Australian Standards specify minimum design, construction and performance requirements for child restraints in order to promote the provision of a high level of protection for children placed in them. Requirements for informative labelling, instructions, marking and packaging are also specified.
The consumer product safety standards were previously declared by Consumer Protection Notice No. 5 of 2007 following the completion of a comprehensive Regulation Impact Statement process in May 2007 that identified the product safety issues and considered the various options for addressing the issues. A draft of the RIS was duly circulated for consideration by interested parties including manufacturers/suppliers of child restraints, State and Territory fair trading/consumer affairs agencies, consumer groups and child safety specialists. All parties strongly supported the Commonwealth’s proposal to continue to regulate the supply of this product based on a revision/update of the current mandatory standard.
It has since become apparent that there are difficulties in the implementation of the consumer product safety standards due to the unintentional inclusion of an endnote in Consumer Protection Notice No. 5. The endnote indicates that a choice of Australian Standard is applicable to goods supplied from 1 October 2007. Legal advice is that the presence of the endnote creates uncertainty and may impact on the validity of the instrument.
The present Consumer Protection Notice addresses the implementation problem by revoking Consumer Protection Notice No. 5 and declaring the same set of consumer product safety standards without the endnote.
The declaration of these consumer product safety standards is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
The declaration commences on the day after it is registered on the Federal Register of Legislative Instruments.
Overview
The Trade Practices Act 1974 was enacted to ensure fair trading and competition in Australian markets and to protect consumers from misleading or deceptive conduct. Consumer Protection Notice No. 12 of 2007 was issued by the Authority of the Parliamentary Secretary to the Treasurer, to address a gap in the implementation of child restraint system safety standards for use in motor vehicles. The Notice was issued to revoke and replace Consumer Protection Notice No. 5 of 2007, which contained an unintentional endnote that created uncertainty in the validity of the instrument. The policy objective of the Notice is to ensure that child restraints supplied on the Australian market have key safety features that reduce the associated risks of injury to/death of a child while travelling in a motor vehicle. The Notice declares the 1995, 2000 and 2004 versions of the Australian Standard for motor vehicle child restraints AS 1754, as varied, to be consumer product safety standards for the purposes of section 65C of the Trade Practices Act 1974.
Scope and Application
The Consumer Protection Notice No. 12 of 2007, issued under the Trade Practices Act 1974, pertains to consumer product safety standards for child restraint systems used in motor vehicles. This legislation applies to all corporations operating within trade or commerce in Australia who supply goods that are intended or likely to be used by consumers, specifically targeting child restraint systems. The Act mandates that these goods must comply with the specified Australian Standards (AS 1754 versions of 1995, 2000, and 2004, as varied) to ensure the safety of children during motor vehicle travel. These standards encompass minimum design, construction, performance, and labelling requirements. The geographic reach of this legislation is national, affecting all states and territories within Australia. There are no stated exclusions or exemptions within the Act itself, although the application can be extended or restricted through subordinate instruments. This Notice revokes the previous Consumer Protection Notice No. 5 to rectify an implementation issue caused by an unintended endnote, ensuring the clarity and enforceability of the safety standards.
Key Provisions
The main operative sections of this legislation, Consumer Protection Notice No. 12 of 2007, declare that the 1995, 2000, and 2004 versions of the Australian Standard for motor vehicle child restraints AS 1754, as varied, are consumer product safety standards (subsection 65E(1) of the Trade Practices Act 1974). This declaration ensures that any child restraint systems supplied in Australia must comply with these standards to ensure child safety during motor vehicle travel. The declared standards encompass minimum design, construction, performance requirements, and also include specifications for informative labelling, instructions, marking, and packaging of child restraints (subsection 65C(1)(a) of the Act).
Under the Trade Practices Act 1974, any corporation supplying child restraint systems must ensure that these goods comply with the declared safety standards. This obligation extends to all corporations involved in the trade or commerce of these goods, meaning they cannot supply non-compliant products. This requirement is intended to protect consumers, particularly children, by mandating that the supplied products meet the established safety benchmarks.
Failure to comply with these safety standards can result in legal consequences. Under the Act, a corporation that supplies non-compliant child restraint systems may face civil or criminal penalties. The exact penalties are not specified in the Consumer Protection Notice, but generally, under the Trade Practices Act, corporations can face substantial fines for breaches of consumer protection laws. Civil penalties can be up to $1.1 million for corporations, while criminal penalties can include fines of up to $66,000 for individuals and $330,000 for corporations, reflecting the seriousness of failing to protect child safety in motor vehicles.