1 September 2004

CONSUMER AFFAIRS VICTORIA INSTITUTES SUPREME COURT PROCEEDINGS IN PRODUCT SAFETY MATTER

Dr David Cousins, Director of Consumer Affairs Victoria, has instituted proceedings in the Supreme Court of Victoria against SJS Imports Pty Ltd, its Managing Director Mr Hu Sheng Xie and a former Director Ms Jen Yung Wang, alleging the company supplied banned toy products and disposable cigarette lighters contrary to prescribed safety standards.

The Director of CAV alleges that SJS Imports has supplied:

• Toy gun set products known as 'Protector Riot Gun Item No.008' which do not comply with a permanent ban order in that the suction tip darts of the product cause a choking hazard.
• Toy gun set products known as 'Electric Shooting Box Lucky Star' and a toy military action figurine with toy missile launcher set product known as 'Power Steel Super Action' contrary to a permanent ban order in that the projectile discharged from the projectile toy in the sets presents a risk of causing serious eye injuries.
• Toy products known as 'Yo Yo Water Balls' contrary to a permanent ban order in that the balls or shapes are connected by a stretchable or elasticised cord which presents a risk of strangulation.
• Disposable cigarette lighters where the flame was too high, surged and spluttered and did not extinguish within 2 seconds of releasing the control mechanism; and which were overfilled with butane; structurally unsafe and did not have the required mandatory warnings and labelling contrary to a prescribed safety standard thereby causing a serious risk of burn injuries.

CAV alleges that the conduct of SJS Imports breaches sections 33 and 44 of the Fair Trading Act 1999 relating to product safety and that Mr Hu Sheng Xie and Ms Jen Yung Wang were knowingly concerned in or party to the contraventions by SJS Imports.

Court documents filed by the Director, CAV seek remedies including the following:

• Declarations that SJS Imports supplied products contrary to permanent ban orders and a prescribed safety standard and contravened the Fair Trading Act 1999.
• Injunctions restraining SJS Imports from carrying on a business of supplying any goods of a kind which may be covered by a ban order or prescribed safety standard until SJS Imports has implemented a compliance program designed to ensure SJS Imports will not supply goods contrary to any ban order or prescribed safety standard and contravene the Fair Trading Act; and restraining Mr Hu Sheng Xie and Ms Jen Yung Wang from being knowingly concerned in or party to the supply of certain goods by a corporation unless the corporation has in place a Fair Trading Act compliance program.
• An order that SJS Imports have its Fair Trading Act compliance program independently audited and reported on.
• Publication of a public safety warning notice to warn consumers about the product safety risks of the toys and disposable cigarette lighters.
• CAV's Costs.