Trade Practices (Consumer Product Safety Standards) Amendment Regulations 1999 (No. 1) 1999 No. 238
EXPLANATORY STATEMENT
STATUTORY RULES 1999 No. 238
Issued by the Authority of the Minister for Financial Services and Regulation
Trade Practices Act 1974
Trade Practices (Consumer Product Safety Standards) Amendment Regulations 1999 (No. 1)
Authority
Section 172 of the Trade Practices Act 1974 (the Act) provides that the Governor-General may make regulations for the purposes of the Act.
Subsection 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 prescribed consumer product safety standard and which 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 as is reasonably necessary to prevent or reduce risk of injury to any person.
Purpose
The purpose of the Regulations is to set new mandatory labelling requirements for elastic luggage straps. These requirements provide for the utilisation of safety colours to enhance the visibility of the warning on the labelling, ensure uniformity of consumer information and assist with the enforcement of the standard by the Australian Competition and Consumer commission (ACCC).
Further details on the proposed Regulations are Attachment A.
A Regulation Impact Statement is attached.
The Regulations commence on 30 November 1999.
Attachment A
DETAILS OF THE REGULATIONS
Details of the Regulations are as follows:
Regulation 1 determines the name of the Regulations to be the Trade Practices (Consumer Product Safety Standards) Amendment Regulations 1999 (No. 1)
Regulation 2 determines that the Regulations commence on 30 November 1999.
Regulation 3 provides for the amendment of the Trade Practices (Consumer Product Safety Standards) Regulations through Schedule 1 of these Regulations.
Schedule 1[1] determines that the name of these Regulations is the Trade Practices (Consumer Product Safety Standards) Regulations 1979.
Schedule 1[2] provides a new heading which details that the existing labelling requirement will continue until 31 May 2001.
Schedule 1[3] determines that the consumer product safety standard for elastic luggage straps will include both the existing labelling requirements and the new labelling requirements contained in Regulation 11B until 31 May 2001.
Schedule 1[4] inserts a reference in the Regulation to the existing labelling requirement.
Schedule 1[5] inserts a new mandatory labelling requirement for elastic luggage straps from 1 June 2001 until 30 November 2004. The labelling requirement provides for the permanent attachment of a clearly displayed warning label in safety colours. It also prescribes the size and words to be used upon the labels.
Overview
The Trade Practices (Consumer Product Safety Standards) Amendment Regulations 1999 (No. 1), issued under the authority of the Minister for Financial Services and Regulation, were enacted to address the need for improved safety standards and labelling requirements for consumer products, specifically elastic luggage straps. These regulations were formulated to amend the Trade Practices (Consumer Product Safety Standards) Regulations 1979, thereby enhancing the visibility and uniformity of safety warnings on luggage straps. This was intended to prevent or reduce the risk of injury to consumers and to streamline enforcement by the Australian Competition and Consumer Commission (ACCC). The regulations were designed to implement the policy objective of ensuring consumer product safety by mandating compliance with specified safety standards, ultimately protecting consumers from potential hazards associated with non-compliant products.
Scope and Application
The Trade Practices (Consumer Product Safety Standards) Amendment Regulations 1999 (No. 1) apply to corporations operating within Australia, imposing mandatory consumer product safety standards on goods intended for consumer use. Specifically, these Regulations amend the Trade Practices (Consumer Product Safety Standards) Regulations to introduce new labelling requirements for elastic luggage straps, effective from 30 November 1999. These amendments are designed to prevent or reduce the risk of injury by enhancing the visibility of warning labels on elastic luggage straps through the use of safety colours, ensuring uniformity of consumer information, and aiding enforcement efforts by the Australian Competition and Consumer Commission (ACCC). The Regulations will remain in effect until 31 May 2001, during which period both existing and new labelling requirements will apply to elastic luggage straps. From 1 June 2001 until 30 November 2004, the new labelling requirements will be the sole standard applicable to these products.
Key Provisions
The main operative sections of the Trade Practices (Consumer Product Safety Standards) Amendment Regulations 1999 (No. 1) include Regulation 1, which names the Regulations, and Regulation 3, which amends the Trade Practices (Consumer Product Safety Standards) Regulations 1979. Schedule 1 within Regulation 3 further details these amendments. Specifically, Schedule 1(2) indicates that the existing labelling requirement for elastic luggage straps will remain in effect until 31 May 2001. Schedule 1(3) states that the consumer product safety standard for elastic luggage straps will incorporate both the existing and new labelling requirements until 31 May 2001. Schedule 1(5) introduces a new mandatory labelling requirement for elastic luggage straps effective from 1 June 2001 until 30 November 2004, specifying the use of safety colours for warning labels and prescribing the size and wording of these labels.
The Regulations impose obligations on corporations to ensure that any elastic luggage straps supplied in trade or commerce comply with the specified consumer product safety standards. Specifically, subsection 65C(1) of the Trade Practices Act 1974 requires that goods supplied by corporations do not contravene prescribed safety standards. This obligation extends to ensuring that the new labelling requirements, such as the use of safety colours and specific wording on warning labels, are adhered to from the effective date of 1 June 2001.
Failure to comply with the mandatory labelling requirements set forth in the Regulations can result in civil and criminal consequences. Under the Trade Practices Act 1974, supplying non-compliant goods in trade or commerce can lead to enforcement actions by the Australian Competition and Consumer Commission (ACCC). The Act does not specify maximum penalties for these offences, but generally, breaches of trade practices laws can incur significant fines and other penalties as determined by the courts. Non-compliance may also result in the ACCC taking legal action against the corporation, which can lead to substantial financial penalties and other civil remedies.