The AFA in conjunction with the ACCC held an online event recently for the Furnishing Industry regarding Product Safety Recalls. The majority of the questions raised at the briefing came from local manufacturers of the Australian Furniture Association Membership.
Here are the TOP QUESTIONS:
In recent years, two major furniture retailers were caught up in a recall of the exact same product, two years apart. After the first recall, and due to the product’s popularity, the product was simply rebadged and supplied by the same off-shore manufacturer to another local retailer, who was then forced into a recall of the same product. Similar to the ‘air bag recall,’ how can authorities monitor and ensure that products do not re-enter the market via another retailer or distributor?
- Would an Australian General Safety Provision Law reduce the supply of unsafe products entering the Australian market? A recent case study: A Product Recall was activated for a furniture product due to safety concerns. No direct communication was made to consumers who had purchased the products, as required. After consumers were alerted via social media, the retailer subsequently received returned products and gave refunds (under duress) and promptly put them back in store as ‘seconds’ for resale.
- How can this practice of resale of recalled products be stopped? If a product is reported by consumers as a potential safety concern for a product recall, which includes expert evidence and toxicology reports showing high levels of toxic and banned chemicals, what is the typical time frame in which authorities would investigate and enact a product recall?
- In which Ministerial Portfolio do authorities responsible for product recalls reside? There are only a small number of furniture products with mandatory standards, including cots and bunks. Some of these have been recalled due to the high risk/danger to children. On at least three occasions in the past few years, the same cots have been recalled twice by two separate distributors who had the same off-shore supplier. How can mandatory standards be strengthened as part of consumer law to reduce these risks?
- How do I ensure that my business is protected from any financial risk as a result of a recall? Paragon Insurance are specialists in Product Recall Insurance and can assist with advice and support to help mitigate the risk.
This webinar was not recorded at the request of authorities. The AFA is preparing transcript notes for AFA members together with a copy of the presentation for future reference.
If you have any questions about Product Safety Recalls related to the Furnishing Industry, please reach out to care@theafa.asn.au