Australian Court Imposes $3 Million Penalty for Product Safety Violations
Earlier this month, the Australian Competition & Consumer Commission (ACCC) reminded businesses that, in February, the Federal Court of Australia ordered Woolworths to pay $3.057 million AUD for several violations of the Competition and Consumer Act 2010 (CCA). Specifically, the court found that Woolworths:
- Over the course of three years, made false or misleading representations about the safety of its deep fryer, drain cleaner, safety matches, padded flop chair, and folding stool products; and
- On eight occasions failed to report, within the required two days, that the products may have caused serious injuries.
It is important to remember that businesses offering products for sale in Australia must comply with the CCA, which prohibits false or misleading representations about the safety of consumer goods, and requires reporting to the ACCC within two days any incidents of serious illness or injury caused by such goods. To that end, businesses should make sure that they have a working compliance program and reporting policy, worldwide.