SA:Trial over plastic bags in March

AAP General News (Australia)
08-23-2010
SA:Trial over plastic bags in March

ADELAIDE, Aug 23 AAP - A trial will be held next year over complaints the consumer
watchdog has raised against two companies that marketed plastic bags in South Australia
that flouted a state ban.

The Australian Competition and Consumer Commission's (ACCC) case against Goody Environment
Pty Ltd and Nupak Australia Pty Ltd came before the Federal Court in Adelaide on Monday
with Justice Bruce Lander setting down dates in March for the expected four-day trial.

The ACCC alleges the companies engaged in misleading and deceptive conduct and made
false representations in contravention of the Trade Practices Act.

The action alleged the two companies had claimed the Goody brand bags contained an
additive that made them biodegradable and compostable.

Under SA laws the sale of lightweight plastic shopping bags is banned unless they are
compostable.

South Australia is the only state to have such a law.

The ACCC alleges that the Goody bags failed to meet Australian standards for biodegradability,
disintegration and the concentration of toxic or hazardous substances.

After an earlier hearing, Nupak undertook to refrain from making representations that
its bags were biodegradable.

The ACCC said Nupak had also agreed to send a letter to each of its customers supplied
with the bags informing them of the ACCC action, the allegations and its undertakings.

In court on Monday, Justice Lander said that as the case involved issues of consumer
protection, it was important the matter be heard without delay.

"If there is anything in it, it ought to be heard by the court as soon as possible," he said.

Justice Lander set down a directions hearing in December.

AAP tjd/jfm/cdh

KEYWORD: BAGS

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