ACCC presentation to NRA Technical Standards Committee Woolworths Head Office, Sydney 26 March 2014 Presented by Peter Wallner
Who we are and what we do ACCC Organisational Chart
Who we are and what we do ACCC Product Safety Branch structure General Manager General ¡Manager ¡ ¡ Ruth Mackay Neville ¡Matthew ¡ ¡ (Policy, Regulated Products, (Chemicals ¡and ¡Compliance) ¡ and International Engagement) Recalls and Hazard Chemical Based Assessment Products Standards and Intelligence and Compliance Recreational and Sections Automotive Products Analysis (I&A) PSB Communication Children’s and & Engagement Household Products Executive Support Surveillance and and Governance Breach Management
Presentation order 1. Background to ACCC initiatives 2. ACCC’s approach to managing perceived and actual chemical hazards: Case Study 1: Dimethyl Fumarate (DMF) in dessicant sachets – Case Study 2: Brominated Flame Retardants in soft furnishings – Case Study 3: Benzidine based dyes in textiles and clothing – 3. Cosmetic Ingredient Labelling requirements 4. Requirements for online sellers 5. Questions
The Chemicals landscape Australian government regulatory agencies with responsibility for chemicals or chemicals in products Food/Drink ¡ Therapeu@cs ¡ Ag/Vet ¡ Industrial ¡ Workplace ¡ Consumer ¡ Environment ¡ Food ¡& ¡beverage ¡ Listable ¡& ¡ Chemicals ¡ Chemicals ¡ Chemical ¡safety ¡ Products ¡ Poten7al ¡ addi7ves, ¡ Registrable ¡ Registered ¡for ¡ For ¡industrial ¡& ¡ in ¡the ¡workplace ¡ Cosme7cs, ¡clothes ¡ environmental ¡ processing ¡aids, ¡ therapeu7c ¡goods ¡ use ¡in ¡agriculture ¡ cosme7c ¡use ¡ OH&S ¡ whitegoods, ¡cleaners ¡ Impacts ¡ nutri7ve ¡& ¡novel ¡ as ¡defined ¡ & ¡veterinary ¡ crockery, ¡electronic, ¡ sports ¡equip ¡ substances, ¡ (not ¡food) ¡ medicine ¡ Labelling ¡ SafeWork ¡ Dept ¡of ¡the ¡ ACCC ¡ FSANZ ¡ TGA ¡ APVMA ¡ NICNAS ¡ Australia ¡ Environment ¡
1. Background to ACCC initiatives Product Safety - what we do ACCC works with state and territory • consumer protection agencies Monitor consumer product safety • Educate consumers and suppliers about • using/supplying safe products Intervene (non-regulatory) in the market to • improve safety of products Apply general provisions of CCA • Negotiate recalls • Regulate specific products bans & standards • mandatory recalls warning notices
1. Background to ACCC initiatives The ACCC is often faced with perceived or actual safety concerns raised by the media and are responsible for ensuring concerns are addressed through evidence based assessment
1. Background to ACCC initiatives Key regulatory concepts of the CCA ACCC administers the Competition and Consumer Act 2010 (CCA). This • includes the Australian Consumer Law (ACL) and consumer product safety provisions. – Consumer good : • intended for personal, domestic, household use or consumption, or • likely to be used for personal, domestic/household use or consumption – Product-related services : • services for or relating to installation of consumer goods • maintenance, repair or cleaning of consumer goods • assembly of consumer goods, or • delivery of consumer goods.
1. Background to ACCC initiatives Key regulatory concepts of the CCA Any person who, in trade or commerce, supplies consumer goods or product- • related services is responsible for complying with ACL product safety requirements: Supply : – • Selling, exchanging, leasing, hiring or hire-purchasing of goods or provisions; or • Granting or conferring of services. Statutory consumer guarantees : A supplier must guarantee: – • their goods are of acceptable quality and match the description; the product is fit for any disclosed purpose. • that any express warranties will be honoured; that consumers have clear title, unless otherwise stated; there are no undisclosed securities; with a right to undisturbed possession. (see Part 3-2 ACL) Reasonably foreseeable use/misuse • Mandatory injury reporting • Strict liability for loss or injury for defective goods • False and misleading representations •
1. Background to ACCC initiatives Mandatory injury reporting by suppliers Supplier must, within 2 days of becoming aware of a death, serious • injury or illness associated with a good they supply, give the Commonwealth Minister a written notice. Serious injury = treatment by a doctor or nurse. • This requirement does not apply if: • – it is clear or very likely that the consumer goods supplied were not associated with the death or serious injury/illness; or – the supplier is required to notify the death or serious injury/illness under another Commonwealth, State or Territory law specified in the Regulations, or under an industry code of practice specified in the Regulations.
1. Background to ACCC initiatives Other ACL provisions False or misleading representations Person in trade or commerce must not make false or misleading representations in relation to the supply of goods or services (ACL Division 2 s29) Substantiation notice ACCC may require claims to be substantiated where a person, in trade or commerce, has made a claim or representation promoting the supply of goods or services (ACL Division 1 s219) Disclosure notice Power to obtain information requiring suppliers of consumer goods or product related services to produce documents and/or provide evidence under oath or affirmation Infringement notices If the Commission has reasonable grounds to believe that a person has contravened an infringement notice provision, an infringement notice may be issued imposing a financial penalty
1. Background to ACCC initiatives Non-regulatory actions taken by ACCC 1. Research surveys and product audits 2. Publishing survey results on the PSA website 3. Negotiating voluntary recalls 4. Writing to suppliers and associations to achieve outcome 5. Issue media releases and warning notices 6. Announce safety thresholds i.e. regulatory reference limits 7. Compliance activities - supplier visits, trade shows 8. Social media campaigns 9. Product Safety Australia website – consumer advice, supplier guides, bulletins, safety alerts
1. Background to ACCC initiatives Regulatory powers available to the relevant Minister 1. Interim and permanent bans (permanent bans are Commonwealth Minister only) 2. Mandatory safety and consumer information standards (Commonwealth Minister only) 3. Recalls – compulsory 4. Safety warning notices ¡
1. Background to ACCC initiatives Chemical Surveys undertaken by the ACCC Surveys ACCC actions Phthalates in soft plastic toys. Ban on certain infant toys/articles with >1% Diethylhexyl Phthalate (DEHP) Toxic elements in children’s make Mandatory safety standard for Lead and certain elements in toys and finger paints. Survey of 95 high risk up, face paints, play dough, crayons toys resulted in Recall of 1 product (face paint) due to excessive lead content. Formaldehyde in textiles (including Non-regulatory reference limit adopted from EU, US, Japan standards. Survey testing for residual blankets) formaldehyde clothing and textiles in Australia found no excessive formaldehyde. Formaldehyde in cosmetics Recalls of 13 cosmetic products including Eye lash glue and Hair straightening products Industry significantly reformulated their products. Hydrogen/carbamide peroxide in DIY Recalls of 28 teeth whitening products . Industry significantly reformulated their products. Appendix C at home teeth whiteners entry for hydrogen peroxide in Poisons Standard. Microbiological hazards in cosmetics Recalls of 3 products including face creams and foundation (9 batches affected) from a survey of 112 products. Labelling issues observed. Benzidine based dyes in textiles and Recalls of 3 product lines affecting multiple product styles from a survey of 199 articles (Phase 1) . Phase clothing 2 testing of further products underway. BPA migration from infant feeding No Further Action . Ongoing monitoring. No BPA detection in samples tested; no exposure to detectable bottles amounts of BPA; safe for their intended purpose Formamide in foam toy mats No Further Action . Joint activity with S&T fair trading agencies. No exposure to detectable amounts of formamide in foam toy mats. N-nitrosamines & phthalates in No Further Action . Ongoing monitoring. No nitrosamine detection in representative samples tested. Shows dummies, bottle teats & teethers no exposure to detectable/excessive amounts of nitrosamines in Australia. Bromine levels in bedding and soft No Further Action . Ongoing monitoring. No risk of exposure to excessive levels of bromine in Australia. furnishings Dimethyl Fumarate (DMF) in No Further Action . Ongoing monitoring. Unlikely to expose Australian consumers to any DMF. desiccant sachets with articles. Paraphenylenediamine (PPD) in hair Compliance issues observed with ingredient labelling and product claims. PPD testing found no evidence dyes of excessive PPD content in hair dyes. Ongoing monitoring. Labelling and safety warnings on Labelling issues observed. Successful negotiation of voluntary initiative on liquid laundry detergent pods Liquid laundry detergent pods safety warning and labelling.
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