Busby Distribution Pty Ltd - s.87B undertaking

Busby Distribution Pty Ltd, the business that operates Aldo Australia stores in Victoria and New South Wales, has offered a section 87B court enforceable undertaking to the ACCC following its supply to consumers of sunglasses that failed to comply with the mandatory consumer product safety standard prescribed under the Trade Practices Act 1974 (the Act), namely AS/NZS 1067:2003 Sunglasses and fashion spectacles (the Standard).

Specifically, Busby supplied sunglasses that were not labelled with the lens category number and corresponding description. Subsequent enquiries also revealed that Busby sold 8 models of sunglasses with category 1 lenses and 1 model of sunglasses with category 4 lenses, none of which had the additional driving warnings as required by the Standard.

Additionally, Busby sold 21 models of sunglasses that received failed performance tests and accordingly should not have been sold to consumers.

As a result of the failed performance tests and absence of the requisite driving warnings, Busby conducted a voluntary recall of 29 models of sunglasses (one model that received a fail performance test was fitted with category 1 lenses).

These recall notices were published in the Sydney Morning Herald on 29 May 2008 and The Herald Sun on 31 May 2008.  Copies of the recall notice were also placed at the point of sale in each Aldo Australia store.

Busby admitted it did not comply with the labelling requirements and subsequently the performance requirements of the Standard in contravention of s65C of the Act and acknowledged it may have also contravened ss52, 53(a) and 55 of the Act.

In resolution of the matter, Busby has undertaken to:

• ensure sunglasses supplied by it that are subject to a mandatory safety and/or information standard prescribed under the Act comply with the relevant standard;
• obtain compliance certificates, or otherwise seek assurance, from Busby’s suppliers or through engaging independent testing from an accredited testing agency that sunglasses supplied to Busby comply with any applicable mandatory safety and/or information standard prescribed under the TPA
• put in place procedures to ensure display and sales stock of sunglasses are appropriately labelled; and
• implement a trade practices compliance program to minimise the risk of future breaches of Part V, including sections 52, 53(a), 55, 65C & 65D of the Act.