Kmart Australia Ltd in Trouble With the Australian Competition And Consumer Commission

The Australian Competition and Consumer Commission has instituted Federal Court proceedings against Kmart Australia Ltd alleging contraventions of s65C of the Trade Practices Act 1974 governing product safety standards.

The ACCC alleges that Kmart supplied ‘Elmo’ shaped bean bag covers in Darwin, Melbourne, Brisbane, Adelaide, Hobart, Sydney and Perth without the required warning label or notice: “WARNING: Small Lightweight Beads Present a Severe Danger to Children if Swallowed or Inhaled.”

The ACCC is seeking an injunction restraining Kmart from supplying bean bag covers that do not comply with the consumer product safety standard as well as orders requiring Kmart to:

* publish a notice in its catalog alerting consumers to the hazard posed by bean bag beads
* publish a notice on its internet website alerting consumers to the hazard posed by bean bag beads
* review its trade practices compliance program, and
* costs.

The ACCC’s proceedings against Kmart utilise the Fast Track List in the Victorian Registry of the Federal Court. The matter has been listed for a scheduling conference in the Federal Court, Melbourne, at 10 a.m. on Wednesday 30 January 2008.

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