Fed: Bunk bed manufacturer found in contempt of court orders

AAP General News (Australia)
08-12-2008
Fed: Bunk bed manufacturer found in contempt of court orders

CANBERRA, Aug 12 AAP - The national consumer watchdog has today vowed to pursue companies
and individuals who do not comply with court orders.

The warning came after a bed supply company and its director were fined $10,000 for
contempt of the Federal Court.

Hercules Iron Pty Ltd and Tom Hatz failed to comply with court orders prohibiting them
supplying bunk beds that did that did not meet mandatory product safety standards.

The need for further litigation could have been avoided if the company had conducted
a product recall after a ruling in February, Australian Competition and Consumer Commission
(ACCC) chairman Graeme Samuel said.

"The company and Mr Hatz were given every opportunity to get it right - this has been
and will continue to be an expensive lesson for the company and Mr Hatz," he said.

"I should also sound a more general note of warning ... the ACCC does not close the
file once orders have been made by the court."

Where there was a breach of court orders the commission would have no hesitation in
swiftly bringing the matter back before court, Mr Samuel said.

"The ACCC regards breaches of court orders very seriously and will be especially vigilant
where the breach of orders involves the supply of products that may cause serious injury
or even death to consumers," he said.

AAP srj/rl/ht/bwl

KEYWORD: ACCC BEDS

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