NRA Technical Standards Committee Woolworths Head Office, Sydney 26 - - PowerPoint PPT Presentation

ACCC presentation to NRA Technical Standards Committee

Woolworths Head Office, Sydney 26 March 2014 Presented by Peter Wallner

ACCC Organisational Chart Who we are and what we do

General Manager Ruth Mackay (Policy, Regulated Products, and International Engagement)

Recalls and Hazard Assessment

Intelligence and Analysis (I&A)

PSB Communication & Engagement

Executive Support and Governance

General ¡Manager ¡ ¡ Neville ¡Matthew ¡ ¡ (Chemicals ¡and ¡Compliance) ¡

Chemical Based Products Recreational and Automotive Products Children’s and Household Products Surveillance and Breach Management

Standards and Compliance Sections

ACCC Product Safety Branch structure Who we are and what we do

Presentation order

1. Background to ACCC initiatives 2. ACCC’s approach to managing perceived and actual chemical hazards:

– Case Study 1: Dimethyl Fumarate (DMF) in dessicant sachets – Case Study 2: Brominated Flame Retardants in soft furnishings – Case Study 3: Benzidine based dyes in textiles and clothing

3. Cosmetic Ingredient Labelling requirements 4. Requirements for online sellers 5. Questions

Australian government regulatory agencies with responsibility for chemicals or chemicals in products

Ag/Vet ¡ Chemicals ¡ Registered ¡for ¡ use ¡in ¡agriculture ¡ & ¡veterinary ¡ medicine ¡ APVMA ¡ Food/Drink ¡ Food ¡& ¡beverage ¡ addi7ves, ¡ processing ¡aids, ¡ nutri7ve ¡& ¡novel ¡ substances, ¡ Labelling ¡ FSANZ ¡ Industrial ¡ Chemicals ¡ For ¡industrial ¡& ¡ cosme7c ¡use ¡ NICNAS ¡ Therapeu@cs ¡ Listable ¡& ¡ Registrable ¡ therapeu7c ¡goods ¡ as ¡defined ¡ (not ¡food) ¡ TGA ¡ Workplace ¡ Chemical ¡safety ¡ in ¡the ¡workplace ¡ OH&S ¡ SafeWork ¡ Australia ¡ Consumer ¡ Products ¡

Cosme7cs, ¡clothes ¡ whitegoods, ¡cleaners ¡ crockery, ¡electronic, ¡ sports ¡equip ¡

ACCC ¡ Environment ¡ Poten7al ¡ environmental ¡ Impacts ¡ Dept ¡of ¡the ¡ Environment ¡

The Chemicals landscape

Product Safety - what we do

• ACCC works with state and territory

consumer protection agencies

• Monitor consumer product safety
• Educate consumers and suppliers about

using/supplying safe products

• Intervene (non-regulatory) in the market to

improve safety of products

• Apply general provisions of CCA
• Negotiate recalls
• Regulate specific products bans & standards

mandatory recalls warning notices

• 1. Background to ACCC initiatives

The ACCC is often faced with perceived or actual safety concerns raised by the media and are responsible for ensuring concerns are addressed through evidence based assessment

• 1. Background to ACCC initiatives

Key regulatory concepts of the CCA

• ACCC administers the Competition and Consumer Act 2010 (CCA). This

includes the Australian Consumer Law (ACL) and consumer product safety provisions. – Consumer good:

• intended for personal, domestic, household use or consumption,
• r
• likely to be used for personal, domestic/household use or

consumption – Product-related services:

• services for or relating to installation of consumer goods
• maintenance, repair or cleaning of consumer goods
• assembly of consumer goods, or
• delivery of consumer goods.
• 1. Background to ACCC initiatives

• Any person who, in trade or commerce, supplies consumer goods or product-

related services is responsible for complying with ACL product safety requirements: – Supply:

• Selling, exchanging, leasing, hiring or hire-purchasing of goods or

provisions; or

• Granting or conferring of services.

– Statutory consumer guarantees: A supplier must guarantee:

• their goods are of acceptable quality and match the description; the

product is fit for any disclosed purpose.

• that any express warranties will be honoured; that consumers have

clear title, unless otherwise stated; there are no undisclosed securities; with a right to undisturbed possession. (see Part 3-2 ACL)

• Reasonably foreseeable use/misuse
• Mandatory injury reporting
• Strict liability for loss or injury for defective goods
• False and misleading representations
• 1. Background to ACCC initiatives

Key regulatory concepts of the CCA

Mandatory injury reporting by suppliers

• Supplier must, within 2 days of becoming aware of a death, serious

injury or illness associated with a good they supply, give the Commonwealth Minister a written notice.

• Serious injury = treatment by a doctor or nurse.
• This requirement does not apply if:

– it is clear or very likely that the consumer goods supplied were not associated with the death or serious injury/illness; or – the supplier is required to notify the death or serious injury/illness under another Commonwealth, State or Territory law specified in the Regulations, or under an industry code of practice specified in the Regulations.

• 1. Background to ACCC initiatives

Other ACL provisions

False or misleading representations Person in trade or commerce must not make false or misleading representations in relation to the supply of goods or services (ACL Division 2 s29) Substantiation notice ACCC may require claims to be substantiated where a person, in trade or commerce, has made a claim or representation promoting the supply of goods or services (ACL Division 1 s219) Disclosure notice Power to obtain information requiring suppliers of consumer goods or product related services to produce documents and/or provide evidence under oath or affirmation Infringement notices If the Commission has reasonable grounds to believe that a person has contravened an infringement notice provision, an infringement notice may be issued imposing a financial penalty

• 1. Background to ACCC initiatives

1. Research surveys and product audits 2. Publishing survey results on the PSA website 3. Negotiating voluntary recalls 4. Writing to suppliers and associations to achieve outcome 5. Issue media releases and warning notices 6. Announce safety thresholds i.e. regulatory reference limits 7. Compliance activities - supplier visits, trade shows 8. Social media campaigns 9. Product Safety Australia website – consumer advice, supplier guides, bulletins, safety alerts

Non-regulatory actions taken by ACCC

• 1. Background to ACCC initiatives

Regulatory powers available to the relevant Minister

1. Interim and permanent bans (permanent bans are Commonwealth Minister only) 2. Mandatory safety and consumer information standards (Commonwealth Minister only) 3. Recalls – compulsory 4. Safety warning notices ¡

• 1. Background to ACCC initiatives

Surveys ACCC actions Phthalates in soft plastic toys. Ban on certain infant toys/articles with >1% Diethylhexyl Phthalate (DEHP) Toxic elements in children’s make up, face paints, play dough, crayons Mandatory safety standard for Lead and certain elements in toys and finger paints. Survey of 95 high risk toys resulted in Recall of 1 product (face paint) due to excessive lead content. Formaldehyde in textiles (including blankets) Non-regulatory reference limit adopted from EU, US, Japan standards. Survey testing for residual formaldehyde clothing and textiles in Australia found no excessive formaldehyde. Formaldehyde in cosmetics Recalls of 13 cosmetic products including Eye lash glue and Hair straightening products Industry significantly reformulated their products. Hydrogen/carbamide peroxide in DIY at home teeth whiteners Recalls of 28 teeth whitening products. Industry significantly reformulated their products. Appendix C entry for hydrogen peroxide in Poisons Standard. Microbiological hazards in cosmetics Recalls of 3 products including face creams and foundation (9 batches affected) from a survey of 112

• products. Labelling issues observed.

Benzidine based dyes in textiles and clothing Recalls of 3 product lines affecting multiple product styles from a survey of 199 articles (Phase 1). Phase 2 testing of further products underway. BPA migration from infant feeding bottles No Further Action. Ongoing monitoring. No BPA detection in samples tested; no exposure to detectable amounts of BPA; safe for their intended purpose Formamide in foam toy mats No Further Action. Joint activity with S&T fair trading agencies. No exposure to detectable amounts of formamide in foam toy mats. N-nitrosamines & phthalates in dummies, bottle teats & teethers No Further Action. Ongoing monitoring. No nitrosamine detection in representative samples tested. Shows no exposure to detectable/excessive amounts of nitrosamines in Australia. Bromine levels in bedding and soft furnishings No Further Action. Ongoing monitoring. No risk of exposure to excessive levels of bromine in Australia. Dimethyl Fumarate (DMF) in desiccant sachets with articles. No Further Action. Ongoing monitoring. Unlikely to expose Australian consumers to any DMF. Paraphenylenediamine (PPD) in hair dyes Compliance issues observed with ingredient labelling and product claims. PPD testing found no evidence

• f excessive PPD content in hair dyes. Ongoing monitoring.

Labelling and safety warnings on Liquid laundry detergent pods Labelling issues observed. Successful negotiation of voluntary initiative on liquid laundry detergent pods safety warning and labelling.

Chemical Surveys undertaken by the ACCC

• 1. Background to ACCC initiatives

Products with Specific CCA Regulations Relating to Chemicals

Certain infant toys/articles with >1% Diethylhexyl Phthalate (DEHP) Cosmetics Tobacco products Lead and certain elements in toys and finger paints Toothpaste containing more than 0.25% Diethylene glycol (DEG) Candles with wicks containing greater than 0.06% lead Oral smokeless tobacco Gas masks containing asbestos Banned Standard for ingredient labelling Standard for warning information Standard for max limits for toxic elements Banned Banned Banned Banned

• 2. Managing chemical hazards

• ACCC established vigilance systems:

– Internal Clearinghouse hazard assessment processes – Injury data including mandatory injury reports – Analysis of complaints from Infocentre and Clearinghouse

• NICNAS assessments for chemicals
• Poisons Information Centre call data
• Media reports
• International assessments and scientific expert opinions
• Industry intelligence - competitor complaints
• Referral from other regulators ¡
• 1. Background to ACCC initiatives

Drivers for chemicals work

Chemical Eye burn injuries Hair Dye reaction Tattoo injuries

Examples ¡of ¡injuries/complaints ¡

Chemical burn to gums

Contact Dermatitis Skin Rash/Allergy

Examples ¡of ¡injuries/complaints ¡

Composition/migration queries Chronic exposure/migration ¡

¡GANGRENE GANGRENE ¡

Examples ¡of ¡injuries/complaints ¡

Examples ¡of ¡injuries/complaints ¡

Examples ¡of ¡injuries/complaints ¡

Examples ¡of ¡injuries/complaints ¡

Reformulating a product to remove alcohol on basis of Carcinogenicity ¡

• Characterise hazard(s)
• adverse effects (endpoints) on the population/subgroup
• Estimate exposure
• amount absorbed from the product via each pathway per

weight

• Determine risk
• exposure relative to accepted safe/unsafe limits based on best

available scientific evidence

• Evaluate in context
• benefits and current social expectations e.g. use of alcohol,

tobacco or motor vehicles

• 2. Managing chemical hazards

ACCC approach to chemicals in consumer goods

Evidence based assessment:

• May conduct surveys or testing
• Directly contact suppliers to obtain information
• Audit labels against formulations & verify specific claims
• Use risk assessments by NICNAS and other relevant national/

international government agencies, expert committees, scientific literature

• Liaise with other regulators - whole of government approach
• Regulatory intervention only where justified
• Plausible exposure and unacceptable risk
• OBPR (Regulatory impact statement)
• Conference process

Our approach to chemicals in consumer goods

• 2. Managing chemical hazards

Case Study 1: Dimethyl Fumarate (DMF)

• 2. Managing chemical hazards

Increased media concerns during 2011 of DMF exposure from textiles and clothing Critical concerns for DMF:

• Potent contact sensitiser of the skin
• DMF is an anti-fungicide used to stop mould

forming in leather and other consumer

• goods. Is usually impregnated into desiccant

sachets In 2011, ACCC and TFIA commenced joint survey to determine extent of DMF in a range of footwear and articles ACCC survey:

• Tested 177 desiccant sachets from suppliers

in Melbourne.

• Depending on results and any industry action,

further ACCC options could include:

• No further Action (NFA)
• Seeking Recalls
• Publishing reference limits on PSA website
• Recommending regulation by Minister

Survey results

• 177 desiccant sachets tested:

– Majority of samples collected from TFIA (note: significant number of samples could not be included in testing due to cross contamination)

– Only 3 samples returned concentrations above 1 mg/kg

• 1.4 mg/kg
• 1.7 mg/kg and
• 4.8 mg/kg.
• These results are very low.
• Footwear and bags currently supplied onto the Australian

market are unlikely to expose Australian consumers to any DMF.

• Report is published on www.productsafety.gov.au

Case Study 1: Dimethyl Fumarate (DMF)

• 2. Managing chemical hazards

Case Study 2: Brominated Flame retardants in soft furnishings

• 2. Managing chemical hazards
• NICNAS PEC review report
• Media concerns about exposure to bromine.
• Detection in food and human blood.
• ACCC survey of soft furnishings in 2011:
• Tested 320 samples of typical leather goods

(soft furnishings, bedding, carpets and drapes)

• consent obtained from 7 suppliers
• XRF testing helped identify whether

following toxic metal elements were present in the products:

• This included elements like: Bromine (Br), Barium(Ba),

Titanium(Ti), Chromium(Cr), Cadmium(Ca), Strontium(Sr), Iron (Fe), Zinc(Zn), Arsenic(As), Tin(Sn), Antimony(Sb), Chlorine(Cl), Manganese (Mn), Zirconium(Zr), Copper(Cu) or Lead (Pb))

Case Study 2: Brominated Flame retardants in soft furnishings

• 2. Managing chemical hazards

Survey Results

• Only 96 out of 320 samples (30%) tested returned Bromine readings.

– These readings were low (<10,000pm).

• 58 samples were <100 ppm;
• 34 samples were between 100 ppm and 1000 ppm;

– Readings of <1000 ppm or 0.1 per cent not considered significant.

• 4 samples were between 1000 ppm and 10,000 ppm

– Black Leather Queen Bed Set (6871 and 6868 ppm); Dining Chair (1030 ppm); and Beige Dining Chair (3149 ppm) – Values >10,000 ppm confirm presence of an element but does not necessarily mean there is a safety issue.

• The detection of Bromine in the product categories sampled are

considered low and unlikely to expose consumers to any Bromine.

• ACCC will continue to investigate mandatory injury reports associated

with these articles and evidence of unsafe consumer goods.

• NICNAS IMAP assessment of 12 Benzidine

based dyes used in articles recommended the ACCC:

– “consider mechanisms to restrict the supply of textiles and leather articles which may come into direct and prolonged contact with the human skin, that may plausibly result in human exposure to these chemicals at unacceptable levels” (published 28 June 2013)

• ACCC survey to determine extent of possible use/exposure:
• Phase 1 sampling (17 Oct to 5 Dec 2013):
• 199 clothing and textile articles tested against EU

limit

• purchased from mainstream suppliers in Canberra,

Brisbane and online.

• Phase 2 sampling: Further samples being tested.
• Depending on results and any industry action, further

ACCC options could include:

• No further Action (NFA)
• Seeking Recalls
• Publishing reference limits on PSA website
• Recommending regulation by Minister

Case Study 3: Benzidine based dyes

• 2. Managing chemical hazards

Survey Results

• 192 (96.5%) of articles had no detectable aromatic amines
• 5 articles contained aromatic amines above the 30 mg/kg (EU limit):
• 1 pillow slip made in Pakistan; and
• 4 pairs of jeans (3 children’s & 1 women’s) made in China
• The aromatic amines detected in those articles included:
• Benzidine,
• 3,3’-Dimethoxybenzidine,
• p-Aminoazobenzene,
• 4,4’-Diaminodiphenylmethane, and
• p-Choloraniline.
• After 1 wash, aromatic amine concentrations did not consistently
• decrease. It increased in some cases.

Case Study 3: Benzidine based dyes

• 2. Managing chemical hazards

ACCC actions

• Contacted affected suppliers; provided test

results

• Shared all known information & NICNAS risk

assessments

• Benzidine/congeners classified Group 1

carcinogens by the IARC and USNTP etc;

• Suppliers given opportunity to investigate

and conduct independent testing

• Where testing verified the problem suppliers

acted responsibly

• Voluntary recalls notified
• Phase 2 testing of further products in the

market currently underway.

Case Study 3: Benzidine based dyes

• 2. Managing chemical hazards

“Cosmetic” definition (Cosmetics Standard 2007): A substance or preparation intended for placement in contact with any external part of the human body, including: the mucous membranes of the oral cavity and the teeth; with a view to:

• altering the odours of the body; or
• changing its appearance; or
• cleansing it; or
• maintaining it in good condition; or
• perfuming it; or
• protecting it.’

Note: not therapeutic goods.

• Cosmetics - consumer goods subject to the ACL and Trade Practices

(Consumer Product Information Standards) (Cosmetics) Regulations 1991 (the Standard))

• Significant proportion of injury reports/complaints associated with

them - some very serious ie anaphylaxis

• Both chemical and microbiological hazards assessed
• 3 regulators involved:
• Cosmetic ingredients – NICNAS (www.nicnas.gov.au)
• Interface with therapeutic goods/claims – TGA (www.tga.gov.au)
• Ingredient labelling requirements – ACCC

(www.productsafety.gov.au)

• 3. Cosmetic Ingredient Labelling

requirements

• Intention of the Standard:

– enables consumers to identify the presence of ingredients to which they may be allergic, sensitive or otherwise concerned about, and – allows comparison of different products at point of sale.

• Ingredients list:

– Must be prominent and legible, – Must be listed on the product container (or listed on the product itself),

• in descending order by either mass or volume,
• in English or its International Nomenclature Cosmetic

Ingredient (INCI) name.

• Where ingredients cannot be displayed on the

container or the product because of its size, shape or nature - a list of the product’s ingredients must be shown in another way that ensures a consumer can be informed about the ingredients in the product.

• These are mandatory requirements, so they must be

prioritised over other label design criteria such as cost, practicality or visual aesthetics.

Ingredient labelling requirements

• 3. Cosmetic Ingredient Labelling

requirements

High severity injuries and possible non-compliance

• Audit formulation against list
• May test product to check ingredients & claims
• ACCC actions have:
• Resulted in major product sector recalls
• Cost of recalls can be substantial
• Affects thousands of suppliers/stores
• Potential fines for non-compliance include up to:

– $1.1 million for companies and – $220 000 for individuals.

• ACCC interventions can have profound impact

suppliers are advised to ensure their products comply and all claims are accurate

Ingredient labelling requirements

• 3. Cosmetic Ingredient Labelling

requirements

Online supply of cosmetics

• All businesses supplying products to Australian consumers, including
• nline businesses, must comply with the ACL, which covers:

– Australia’s product safety laws – consumer guarantees – false or misleading claims.

• Online suppliers should also display ingredients to consumers at the time of making a

purchase decision: – Consistent with the intent and wording of the Standard and Explanatory Statement – Most equivalent to bricks and mortar model where consumers have physical access to the product – Provides consumers with safety information prior to purchase.

• Not considered onerous to display ingredients on the screen where the

product image or description appears

• Education material available on the PSA website

Ingredient labelling requirements

• 4. Requirements for Online Selling

General online consumer issues

• Focus area for ACCC (also see Rod Sims speech to the CEDA conference February

2014: http://www.accc.gov.au/speech/ceda-conference-looking-forward-to-2014)

• product safety issues for consumers buying goods over the

internet

• business-to-consumer transactions
• Online selling brings challenges and opportunities
• for product safety regulators, businesses and industry

associations, consumer groups and international networks

• Some online consumer protection issues are not ‘new’
• but e-commerce business platforms and consumer expectations

are constantly evolving

• Understanding the ‘problems’
• the ACCC conducted a series of internet sweeps, including

assessment of ‘standalone’ online retailers and marketplace/ enabler sellers based in Australia and offshore

• identified compliance concerns, and examples of best industry

practice

• 4. Requirements for Online Selling

Online consumer issues

• 4. Requirements for Online Selling
• What we found
• Consumer experience is impacted by inability to inspect goods
• clear and compliant labelling and web images are important
• Best, compliant practices identified in the cosmetics industry
• use of high quality photographs and product images
• clear, accurate ingredients lists that consumers can access before ‘checking out’
• ACCC action in addressing online consumer protection issues
• Steel frame bicycle helmets
• Child restraints
• Grobags
• ACCC has had a range of other successes in having unsafe

products removed from online sale (e.g. teeth whiteners)

• We are working closely with a number of online marketplaces
• Continuing to work closely with international product safety

regulators and networks is key– e-commerce is global

Online consumer issues – key points

• 4. Requirements for Online Selling
• Public report and business guidance released 20 March

2014: Consumer Product Safety Online www.productsafety.gov.au/consumersonline

• There are steps online businesses can take to ensure

consumers know what they are about to purchase before the final ‘click’

• Comply with Australian product safety bans and standards
• Use high-quality product images and descriptions
• Put product safety warnings ‘up front’ or use informative

‘pop up’ messages

• e.g. some warning label information and clear instructions for use

Contact details

Peter Wallner

Director – Standards & Compliance (Chemical Based Products) Product Safety Branch Australian Competition & Consumer Commission 23 Marcus Clarke Street Canberra 2601 T: +61 2 6243 4972 | F: +61 2 6243 1073 E: Peter.Wallner@accc.gov.au

Send general queries to the: Product Safety Chemicals Mailbox (productsafetychemicals@accc.gov.au)

www.productsafety.gov.au |www.recalls.gov.au | www.accc.gov.au

• 5. Questions

? ¡