Powertool maker Black & Decker has been caught incorrectly advertising goods as being “made in Australia” for the second time in three years.
The Australian Competition and Consumer Commission says the packaging on some of Black & Decker’s Powerfile sanding belts were labelled “Made in Australia” when in fact the belts were made in Germany.
The corporate watchdog says the tools had originally been made in Australia, but sourcing was later switched to Germany. But despite quality control processes put in place after the ACCC’s last “made in Australia” crackdown, the tool maker failed to detect the sourcing change.
ACCC chairman Graeme Samuel said traders need to continually ensure their marketing statements are actually true.
“This vigilance is not a one-off process, but requires traders to be pro-active and to monitor and scrutinise statements about their products.”
As well as agreeing to remove the sanding belts from sale, Black & Decker has agreed to extend a court-enforceable undertaking it made in 2006 after the first case, which includes agreements to undertake a Trade Practices Act compliance program.
The company has also agreed undertake an audit of its domestic suppliers to identify the source country of all of the materials used in the manufacture of the products that they supply to Black & Decker.
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James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
