Product Safety - Business Information

This Topic Includes:
The Ministry's Role
Fair Trading Act
Penalties
Enforcing the Fair Trading Act

Introduction

Businesses have a responsibility to make sure they are aware of products safety issues when manufacturing, importing and selling products.

The Business Information Section also covers topics such as product recalls and legislation.

It is important that a business regard safety as an integral part of its operations. Businesses have a responsibility to provide safe products and address issues of safety as they arise. These issues include not only the physical characteristics of the product but also an understanding of the likely manner in which they will be used and other factors which may impinge on their safe use.

The Ministry’s role

The Ministry of Consumer Affairs is responsible for administering and monitoring the provisions of the Fair Trading Act.

This means we give policy advice to the Minister of Consumer Affairs on the application of the product safety provisions of the Fair Trading Act.

In providing such advice the Ministry considers:

• complaints received about specific products
• the potential or actual injury risk posed by the product
• the costs and benefits of a possible standard/ ban or compulsory recall
• any other relevant information.

Fair Trading Act - safety provisions

Parts III and IV of the Fair Trading Act deal with product and service safety.

Part III allows the Minister of Consumer Affairs to

• ban unsafe products
• order a compulsory recall of a product
• recommend the making of mandatory standards.

Part IV allows the Minister of Consumer Affairs to recommend the making of a service safety standard.

Penalties

There are substantial penalties for breaches of the product safety provisions of the Fair Trading Act. Fines of up to $60,000 for individuals and up to $200,000 for companies may be imposed on offenders.

Enforcing the Fair Trading Act

The Commerce Commission is responsible for the enforcement of the provisions of the Fair Trading Act.

The Commerce Commission is a statutory body established under the Commerce Act 1986. Its principal functions under the Fair Trading Act are to:

• inform the general public, traders and consumers about the provisions of the Act
• investigate and where necessary take action under the enforcement provisions of the Act against traders who contravene the Act.

Contact the Commerce Commission if you require information about how any existing standards operate or if you are concerned about compliance with a standard.