Daiso fined $1 million for selling unsafe products - Media release

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Date
6 December 2017
Category
Media releases

A national retailer who sold unsafe products to Victorian, New South Wales and Queensland consumers has been ordered to pay $1 million by the Federal Court of Australia.

Daiso Industries (Australia) Pty Ltd (ACN: 160 576 134)  was found to have supplied, offered to supply or possessed goods that did not comply with mandatory product safety and information standards in contravention of the Australian Consumer Law and Australian Consumer Law (Vic).
A cross-jurisdiction investigation, involving Consumer Affairs Victoria counterparts in New South Wales and Queensland, led to the seizure of more than 6,500 non-compliant products from 15 Daiso stores, including seven in Victoria.

These included dangerous projectile toys, toys for children under three posing potential choking hazards, sunglasses, luggage straps and cosmetics with incorrect or insufficient labelling.

Director of Consumer Affairs Victoria Simon Cohen said the outcome highlighted the impact of consumer affairs regulators working together and was a timely reminder to wholesalers and traders.

“This outcome would not have been possible without the hard work and co-operation of consumer affairs regulators in Victoria, New South Wales and Queensland,” Mr Cohen said.

“With Christmas fast approaching, this outcome should act as a reminder to all traders and wholesalers to ensure their products are safe and compliant.”

In addition to the $1 million penalty, the Federal Court of Australia handed down several significant orders and injunctions, including:

  • an ongoing compliance plan with qualified independent external compliance consultant review, and reporting requirements to Consumer Affairs Victoria.
  • the destruction and disposal of any contravening goods seized or purchased as part of the cross-jurisdictional investigation including the payment by Daiso Industries (Australia) Pty Ltd of the costs of and incidental to the destruction and disposal of the contravening goods
  • Daiso Industries (Australia) Pty Ltd to pay the costs of the proceeding, fixed in the sum of $160,000.

Daiso Industries (Australia) Pty Ltd  must also issue a public notice acknowledging the Federal Court orders  in major metropolitan newspapers the Herald Sun, Courier Mail, Daily Telegraph, as well as on all Daiso websites.

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