Cotton On has paid penalties totalling $19,800 after allegedly failing to submit mandatory product safety reports on time.
Australia’s consumer watchdog, the ACCC, had issued the brand with two infringement notices for failing to comply with mandatory product safety reporting requirements on two occasions.
The ACCC alleges that Cotton On didn’t submit the reports within the required two days after it became aware of serious injuries relating to two products supplied by its subsidiaries Supre and Typo. This is in respect of injuries related to a Supre-branded pair of jeans, and a Typo-branded Christmas snow globe.
Under the Australian Consumer Law, suppliers must submit a report within two days of becoming aware of any death or serious injury or illness which may have been caused by the use or foreseeable misuse of their products.
“Mandatory reporting helps the ACCC identify potentially unsafe products quickly and act promptly to protect consumers from harm,” ACCC Commissioner Luke Woodward said.
“Suppliers must have systems in place to identify reportable incidents and notify the ACCC within the required two-day timeframe.”
Cotton On has undertaken a risk assessment and additional safety testing of both products, which confirmed the reported injuries did not arise from a defect or safety issue with the products. The company cooperated with the ACCC and has strengthened its mandatory reporting compliance processes.
“While the ACCC has not identified any safety concerns about the products, Cotton On’s alleged reporting failures delayed important product-safety information reaching us,” Mr Woodward said.
“The failure to report serious safety incidents quickly is serious because it may delay urgent safety action, including recalls, and could put other consumers at risk of injury or death.”
Cotton On has committed to conduct regular audits of consumer complaints it receives where an injury or illness is recorded for three years, to assess whether it has complied with its mandatory reporting obligations.
Product safety issues which have the potential to cause serious harm to consumers are an enduring ACCC priority.