Dimmeys fined for selling kids dressing gowns without fire hazard labels
apparel and homewares store dimmeys has been fined $400,000 in the federal court for supplying children’s dressing gowns which failed to meet safety standards.
the store was taken to court by the australian competition and consumer commission (accc), which alleged in may and june 2010 dimmeys sold kids dressing gowns without fire hazard warning labels, which is required by safety standards.
it also claimed between april 2009 and august 2010 dimmeys sold children’s dressing gowns that did not have fire hazard warning labels in the correct position.
“this outcome is significant because it is the first civil penalty handed down for a breach of a product safety standard,” explains accc chairman graeme samuel.
“this case sends a strong message to all suppliers that they risk substantial penalties if they supply products which do not comply with prescribed product safety standards.”
justice gordon imposed a total penalty of $400,000, which includes $300,000 for contraventions relating to the sale of the dressing gowns without a fire hazard warning label and $100,000 for contraventions relating to sales of the gowns after 14 april 2010 with their fire hazard warning label in the wrong position.
the court also ordered dimmeys to implement a trade practices compliance program, be restrained for five years from selling children’s nightwear that doesn’t meet the standard and pay accc’s agreed costs of $60,000.
“it is concerning that this action follows fines imposed on dimmeys for previous breaches of product safety standards,” says samuel.
“in 2001 dimmeys was fined $160,000 for breaches in relation to selling children’s nightwear that did not comply with the standard and in 1999 dimmeys was fined $60,000 for product safety breaches in relation to the sale of children’s bicycles.
“it is imperative that suppliers have in place a compliance programme, which incorporates appropriate procedures to ensure that the products they supply comply with prescribed consumer product safety standards.”
dimmeys’ breach was discovered during a product survey exercise which the accc conducts on a regular basis.