Living Momentum Pty Ltd - s.87B undertaking

Living Momentum Pty Ltd has provided court enforceable undertakings to the ACCC after bunk beds that it had imported and supplied to consumers did not comply with the requirements of the mandatory product safety standard.

Consumer Protection Notice No.1 of 2003 – Consumer Product Safety Standard – Bunk Beds made pursuant to section 65E of the TPA requires bunk beds supplied in Australia to comply with certain requirements specified in the Australian and New Zealand Bunk Bed Standard AS/NZS 4220:1994.

Testing revealed that the bunk beds that Living Momentum had supplied to consumers did not meet a number of requirements of the mandatory Standard.

The ACCC formed the view that Living Momentum had contravened section 65C of the Trade Practices Act 1974 which prohibits a corporation from supplying goods that are in breach of product safety standards and consumer protection notices.

The ACCC has accepted a section 87B undertaking from Living Momentum to address the matter.

Living Momentum has undertaken to the ACCC that it will:

• for a period of 3 years, ensure that goods supplied by Living Momentum that are subject to a prescribed safety and/or information standard under the TPA comply with the relevant standard;
• at its own expense, cause to publish an information notice on its website;
• display an information notice at the point of sale in its store for a period of no less than 3 months;
• contact its customers who purchased the products to offer them the option to repair and modify the bunk bed, or be refunded the cost of the bunk bed and report on this obligation to the ACCC; and
• establish and implement and maintain a Trade Practices Compliance Program for 3 years, to minimise the risk of future breaches of section 65C of the TPA and to ensure an awareness of the responsibilities and obligations in relation to the requirements of section 65C of the TPA.