Lessons for Product Manufacturers from the Trade Quip Pty Ltd Case
This past spring, Trade Quip Pty Ltd, a manufacturer of hydraulic trolley jacks located in Australia, was fined $100,000 by the Federal Court of Australia for omissions and errors in their product safety label that put consumers at risk of physical harm. According to an announcement by the Australian Competition and Consumer Commission, the Court declared that more than 2,000 jacks sold between August 2009 and September 2010 had a warning label that was in a font size that was too small and, for some jacks, contained an incorrect warning message. This was found to be in violation of trolley jack labeling standards that require specific safety information to be affixed to jacks, including a clear warning that individuals should not get under a vehicle that is only supported by a trolley jack and to use vehicle support stands. By not including this information on the company’s labels, users of the jacks were unnecessarily put at serious risk of injury or death.
What This Case Means for Manufacturers
While this court case and subsequent judgment took place in Australia, the message it sends goes far beyond the country’s shores: it’s important for every product manufacturer to know that the safety labels they place on their products need to be well thought-out and in compliance with applicable standards. The bottom line is that your safety labels require your utmost attention, both to protect your product users from harm and to protect your company from potentially devastating lawsuits.
Understanding the Standards – And How to Apply Them
There are three levels of standards that product manufacturers must take into consideration:
- A-level standards are the overarching general standards that provide guidance for all product manufacturers on a subject. In the United States, for product safety labeling, this is ANSI Z535.4 Standard for Product Safety Signs and Labels. Internationally,...
