AUSTRALIA. National carrier Qantas and its retail concessionaire Alpha Flight Services have been fined for selling banned toy magnets onboard.
The Federal Court ruling, issued on 24 December, related to the onboard sale of Nano Magnetics Nanodots – small high-powered magnets.
The items had been deemed to be non-compliant with a permanent ban on small, high-powered magnets imposed by the government in November 2012. However, Alpha offered them onboard during August and September 2013 via its In Sky Shopping catalogue and website.
A passenger complaint led to the legal case. Alpha was ordered to pay A$50,000 (US$40,000) to the State of Victoria and to publish notices (pictured) within 21 days on its retail website www.inskyshopping.com and in the shopping catalogue regarding the banned product, including the words “Product safety – important notice ordered by Federal Court of Australia”.
Qantas was ordered to pay A$200,000 (US$160,000) to the State of Victoria and also publish notices about the banned product at www.qantas.com.au until the Alpha and Qantas In Sky Shopping catalogue is withdrawn or replaced.
 |
Qantas and Alpha Flight Services have been ordered to publish this notice prominently |
Both parties were also ordered to take out advertisements in The Australian and The Financial Review newspapers and to offer full refunds to all customers who had bought the magnets.
In mitigation, Judge Tony Pagone said: “Neither was aware of the permanent ban in relation to the Nanodots, neither intended to contravene the provisions, and neither has previously been found by a court to have engaged in similar conduct. However, neither at the time had in place within their own organisations the necessary mechanisms to ensure that a product like the Nanodots, that is, that a product that was prohibited, would not come within their possession or control, would not be offered for sale, and would not be sold.”
In ordering a lower penalty for Alpha, Judge Pagone commented: “The court should also substantially reward Alpha’s exemplary and prompt behavior.”
Of Qantas, he said: “The position of Qantas is different. Its role was described by counsel for the Director as essentially that of washing its hands of the obligations it had in respect of compliance with the relevant provisions. Qantas relied upon Alpha rather than to have taken steps of its own to ensure that it was complying with its obligations.
“The systems in Qantas, however, failed to respond swiftly when alerted to the fact of its non-compliance with its obligations at law and to a danger which its non-compliance posed to young children.”
Qantas has outsourced its duty free programme to Alpha since 20 April 2004. According to the ruling, its duty free operation in the financial year ended 30 June 2014 had a net turnover of A$11.1 million (US$9 million) with a net profit of A$336,000 (US$271,000).
 |
 |
