Fantastic Furniture, Spotlight and Smash Enterprises are facing the Federal Court in Melbourne after the Australian Competition and Consumer Commission (ACCC) alleges they supplied bean bag covers that did not comply with mandatory consumer product safety standards.
It is alleged that Smash, a designer and wholesale of consumer goods, supplied bean bags to Fantastic Furniture and Spotlight in October 2008 without the choking hazard warning label as required by the standard. Fantastic Furniture and Spotlight allegedly supplied those bean bag covers to consumers.
It is further alleged that, by supplying the bean bag covers, Fantastic Furniture breached a court-enforceable undertaking it provided to the ACCC in 2008 and which has effect for three years.
The ACCC is seeking injunctions prevent the retailers from supplying bean bags unless they compy with the standard, declare that they have contravened the Trades Practices Act, as well as orders them to each implement a trade practices compliance program and costs.