explanatory Statement
Select Legislative Instrument 2006 No. 217
Issued by the Authority of the Parliamentary Secretary to the Treasurer
Trade Practices Act 1974
Trade Practices (Consumer Product Safety Standard) (Bicycle Helmets) Amendment Regulations 2006 (No. 1)
Subsection 172(1) of the Trade Practices Act 1974 (the Act) provides, in part, that the Governor-General may make regulations not inconsistent with the Act, prescribing all matters that are required or permitted by the Act to be prescribed or are necessary or convenient to be prescribed for carrying out or giving effect to the Act.
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 there is a consumer product safety standard for those goods and they do not comply with that standard.
Subsection 65C(2) of the Act provides that a regulation may, in respect of goods of a particular kind, prescribe a consumer product safety standard consisting of such requirements as are reasonably necessary to prevent or reduce risk of injury to any person. These requirements may relate to, among other things, performance, design, or construction of the goods; testing of the goods; and the markings, warnings or instructions to accompany them.
The Trade Practices (Consumer Product Safety Standard) (Bicycle Helmets) Regulations 2001, which is amended by these Regulations, set out the consumer product safety standard for bicycle helmets until 31 August 2006. When originally promulgated, it was intended that this mandatory Standard (“the mandatory Standard”) would be reviewed before it expired.
The purpose of the Regulations is to provide that the mandatory Standard remains in force for a further 12 months, until 31 August 2007. This will allow Standards Australia adequate time to complete a review currently being undertaken of the Australia / New Zealand standard which provides the basis for the mandatory Standard. This will enable consideration to be given to incorporating any changes to the Australia / New Zealand standard which might result from the review into the mandatory Standard.
The mandatory Standard specifies the basic performance requirements for bicycle helmets, so as to mitigate the adverse effects of a blow to the head.
The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003. For the purposes of section 17 of that Act, no consultation was undertaken in relation to the Regulations as they are of a minor or machinery nature and do not substantially alter existing arrangements. The Office of Regulation Review advised that the preparation of a Regulation Impact Statement was not mandatory for the same reasons.
The Regulations commence on the day after they are registered on the Federal Register of Legislative Instruments.
Details of the Regulations are at Attachment A.
Attachment A
Details of the Trade Practices (Consumer Product Safety Standard) (Bicycle Helmets) Amendment Regulations 2006 (No. 1)
Regulation 1 – Name of Regulations
This regulation provides that the name of the Regulations is the Trade Practices (Consumer Product Safety Standard) (Bicycle Helmets) Regulations 2006 (No. 1).
Regulation 2 – Commencement
This regulation provides that the Regulations commence on the day after they are registered.
Regulation 3 – Amendment of Trade Practices (Consumer Product Safety Standard) (Bicycle Helmets) Regulations 2001.
This regulation provides that the Trade Practices (Consumer Product Safety Standard) (Bicycle Helmets) Regulations 2001 (the Principal Regulations) are amended by Schedule 1.
Schedule 1 – Amendments
This schedule provides for two amendments to the Principal Regulations.
Item [1] substitutes a new heading for Regulation 6.
Item [2] omits a date (31 August 2006) and inserts another (31 August 2007) in its place. The effect of this change is to extend the operation of the Principal Regulations by twelve months.
Overview
The Trade Practices (Consumer Product Safety Standard) (Bicycle Helmets) Amendment Regulations 2006 (No. 1) were enacted to extend the operation of the consumer product safety standard for bicycle helmets by 12 months, until 31 August 2007. This extension was necessary to allow Standards Australia adequate time to complete a review of the Australia/New Zealand standard that forms the basis of the mandatory safety standard. The original Trade Practices (Consumer Product Safety Standard) (Bicycle Helmets) Regulations 2001, which set out the safety standard for bicycle helmets, were due to expire on 31 August 2006. The primary objective of these regulations is to ensure that bicycle helmets supplied in trade or commerce comply with the consumer product safety standard, thereby preventing or reducing the risk of injury from head blows. The regulations were issued under the authority of the Parliamentary Secretary to the Treasurer, in accordance with Subsection 172(1) of the Trade Practices Act 1974, which empowers the Governor-General to make regulations necessary for the enforcement of the Act. Given their nature, no consultation or preparation of a Regulation Impact Statement was required, as they do not substantially alter existing arrangements.
Scope and Application
The Trade Practices (Consumer Product Safety Standard) (Bicycle Helmets) Amendment Regulations 2006 (No. 1) extends the applicability of the existing consumer product safety standard for bicycle helmets under the Trade Practices Act 1974 by one year, to 31 August 2007. This extension is necessary to allow Standards Australia sufficient time to complete a review of the Australia/New Zealand standard, which forms the basis of the mandatory safety standard. The Regulations apply to corporations in trade or commerce who supply bicycle helmets to consumers, ensuring that these helmets meet the specified safety standards to prevent or reduce the risk of injury. There are no exclusions or exemptions stated in the Regulations, and they apply nationally across Australia. The Regulations do not substantially alter existing arrangements and were not subject to mandatory consultation or a Regulatory Impact Statement due to their minor nature. These Regulations are a legislative instrument under the Legislative Instruments Act 2003 and will come into effect on the day after they are registered on the Federal Register of Legislative Instruments.
Key Provisions
The Trade Practices (Consumer Product Safety Standard) (Bicycle Helmets) Amendment Regulations 2006 (No. 1) (the Regulations) are an extension of the existing Trade Practices (Consumer Product Safety Standard) (Bicycle Helmets) Regulations 2001, which originally set out the mandatory consumer product safety standard for bicycle helmets until 31 August 2006. Regulation 3 of the new Regulations amends the 2001 Regulations by extending their operation by twelve months, until 31 August 2007 (Schedule 1, Item [2]). This extension provides time for Standards Australia to complete a review of the Australia/New Zealand standard, which underpins the mandatory Standard. This review aims to incorporate any changes that result from the review into the mandatory Standard.
Under the Trade Practices Act 1974 (the Act), corporations are prohibited from supplying goods that do not comply with a consumer product safety standard if one exists (s 65C(1)(a)). The Act also allows for the creation of such standards through regulation, which may include requirements for performance, design, construction, testing, markings, warnings, and instructions (ss 65C(1)(a), (2)). The Regulations amend the 2001 Regulations to continue these standards, ensuring that bicycle helmets supplied in Australia meet safety requirements designed to mitigate the effects of head injuries.
The Regulations impose obligations on corporations to ensure that any bicycle helmets supplied in trade or commerce comply with the mandatory safety standards. This includes adhering to specifications regarding the helmet's performance, design, construction, and accompanying instructions or warnings. These standards are intended to reduce the risk of injury from head blows, ensuring that helmets provide adequate protection to consumers.
Failure to comply with the mandatory safety standards for bicycle helmets can result in significant penalties. Under the Trade Practices Act, corporations found to be in breach of the consumer product safety provisions may face substantial fines. For corporations, the maximum penalty for contravening these safety standards can be up to $1.1 million for each individual contravention (s 12GG). Additionally, individuals involved in the management of the corporation who are responsible for the contravention may face personal penalties, including fines of up to $220,000 and imprisonment for up to two years (s 12GE). These penalties underscore the importance of compliance with the mandatory safety standards to protect consumers.