Australian Competition and Consumer Commission v Smash Enterprises Pty Ltd (No 2) [2011] FCA 376

Australian Competition and Consumer Commission v Smash Enterprises Pty Ltd (No 2) [2011] FCA 376

Both Smash Enterprises Pty Ltd and Spotlight Pty Ltd contravened s 65C of the Trade Practices Act 1974 (Cth) by supplying bean bag covers that failed to carry warning labels as prescribed by reg 11 of the Trade Practices (Consumer Product Safety Standards) Regulations 1979 (Cth); appropriate relief by declaration, injunction and compliance program orders are warranted as admitted and consented by the parties.

Parties
Applicant: Australian Competition and Consumer Commission; First Respondent: Smash Enterprises Pty Ltd (ACN 091 134 708); Second Respondent: Spotlight Pty Ltd (ACN 005 180 861); Third Respondent: Fantastic Furniture Pty Ltd (ACN 003 688 855)
Jurisdiction
Australia
Judgment Date
14 April 2011
Procedural Posture
Civil / Final Orders and Reasons for Judgment
Outcome
Declarations of contravention; injunctions restraining supply of non-compliant bean bag covers for five years; compliance program orders; orders for costs.
Legal Topics
Product Safety, Declarations, Injunctions, Compliance Programs
Competition Law Consumer Protection Product Safety Declarations Injunctions Compliance Programs

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Parties

Australian Competition and Consumer Commission

Applicant

Smash Enterprises Pty Ltd (ACN 091 134 708)

First Respondent

Spotlight Pty Ltd (ACN 005 180 861)

Second Respondent

Fantastic Furniture Pty Ltd (ACN 003 688 855)

Third Respondent

Procedural Posture

Civil / Final Orders and Reasons for Judgment

Legal Issues

  1. 1 Whether Smash Enterprises Pty Ltd contravened s 65C of the Trade Practices Act 1974 (Cth) by supplying non-compliant bean bag covers
  2. 2 Whether Spotlight Pty Ltd contravened s 65C of the Trade Practices Act 1974 (Cth) by supplying non-compliant bean bag covers

Ratio Decidendi

Both Smash Enterprises Pty Ltd and Spotlight Pty Ltd contravened s 65C of the Trade Practices Act 1974 (Cth) by supplying bean bag covers that failed to carry warning labels as prescribed by reg 11 of the Trade Practices (Consumer Product Safety Standards) Regulations 1979 (Cth); appropriate relief by declaration, injunction and compliance program orders are warranted as admitted and consented by the parties.

Court Disposition

Declarations of contravention; injunctions restraining supply of non-compliant bean bag covers for five years; compliance program orders; orders for costs.

Orders

  • Declaration that Smash Enterprises Pty Ltd contravened s 65C of the TPA by supply of 2,112 bean bag covers to Spotlight and 11,024 bean bag covers to Fantastic Furniture without prescribed warning labels.
  • Declaration that Spotlight Pty Ltd contravened s 65C of the TPA by supply of 1,702 bean bag covers which did not comply with prescribed consumer product safety standard.