The Australian Competition and Consumer Commission (ACCC) fined supermarket giant Woolworths more than $3 million for their delay in notifying the consumer watchdog about a number of faulty products.
The company continued to sell products such as drain cleaner and safety matches under their private label brand, which had caused a number of consumer complaints and injuries. Some complaints included serious injury as a result of the drain cleaner’s faulty child-proof cap causing burns and other injuries and the whole match box igniting upon striking a single match.
The ACCC said that the labels stating that the drain cleaner product had a functioning child-proof cap were “misleading and deceptive” or “likely to mislead or deceive”.
With Woolworth’s having to foot this huge penalty, as well as the loss of goodwill from customers regarding their private label products, this case serves as a reminder to those sourcing products from overseas and those self-sourcing products, to be stringent with your quality testing and responsible for the safety of your goods.