explanatory Statement
Select Legislative Instrument 2007 No. 260
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 2007 (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 2007. 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 until 12 December 2008. 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 has agreed that the Regulations would have no or low impact on business. In consequence, a Regulation Impact Statement was not required.
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 2007 (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 2007 (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 2007) and inserts another (12 December 2008) in its place. The effect of this change is to extend the operation of the Principal Regulations.
Overview
The Trade Practices (Consumer Product Safety Standard) (Bicycle Helmets) Amendment Regulations 2007 (No. 1) were introduced to address the need for continued regulation of consumer product safety standards for bicycle helmets after the expiration of the original Trade Practices (Consumer Product Safety Standard) (Bicycle Helmets) Regulations 2001. Enacted under the authority of the Parliamentary Secretary to the Treasurer, these regulations were made under subsection 172(1) of the Trade Practices Act 1974, which allows for the prescription of regulations necessary to enforce the Act. The policy objective of these regulations is to ensure that bicycle helmets continue to meet consumer safety standards until a review of the Australia/New Zealand standard, which forms the basis of the mandatory standard, is completed and any necessary changes are incorporated into the regulations. The regulations allow for the extension of the mandatory standard for bicycle helmets until 12 December 2008, providing sufficient time for the review and potential amendments.
Scope and Application
The Trade Practices (Consumer Product Safety Standard) (Bicycle Helmets) Amendment Regulations 2007 (No. 1) applies to corporations within the Commonwealth of Australia. These regulations are designed to ensure that corporations do not supply goods that do not meet the prescribed consumer product safety standard, particularly in relation to bicycle helmets. The regulations extend the operational period of the consumer product safety standards for bicycle helmets, previously set by the Trade Practices (Consumer Product Safety Standard) (Bicycle Helmets) Regulations 2001, to 12 December 2008. This extension allows Standards Australia time to complete a review of the Australia/New Zealand standard that underpins the mandatory standard for bicycle helmets, ensuring that any necessary updates can be incorporated. The regulations do not apply to any specific exclusions or exemptions as they are of a minor or machinery nature, and no consultation or regulatory impact assessment was required due to their low impact on business. These regulations commence 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 2007 (No. 1) primarily serve to extend the operational period of the mandatory consumer product safety standard for bicycle helmets, as set out in the Trade Practices (Consumer Product Safety Standard) (Bicycle Helmets) Regulations 2001 (Regulations 2 and Schedule 1). These Regulations ensure that the existing consumer product safety standard for bicycle helmets remains in effect until 12 December 2008, allowing Standards Australia to complete its review of the Australia/New Zealand standard that underpins the mandatory Standard (Section 2, Schedule 1).
The Act imposes specific obligations on corporations to comply with the consumer product safety standard for goods intended for consumer use. Under section 65C(1)(a) of the Trade Practices Act 1974, a corporation must not supply goods in trade or commerce if they do not comply with a prescribed consumer product safety standard. The Regulations ensure that bicycle helmets supplied by corporations continue to meet the specified safety requirements until the extended date of 12 December 2008. Compliance with the mandatory Standard is critical for ensuring that bicycle helmets provide adequate protection against head injuries.
Failure to comply with the consumer product safety standard can result in significant legal consequences. Under section 65C(1)(a) of the Trade Practices Act 1974, corporations that supply non-compliant bicycle helmets can be subject to civil penalties. The maximum penalty for corporations can be up to $1.1 million, as outlined in the Act. Additionally, individuals responsible for the contravention may face personal penalties, which can include fines of up to $220,000. These stringent penalties underscore the importance of adhering to the mandatory safety standards to protect consumer safety.