$1M Fine Slapped On Cotton On Kids

Popular fashion brand Cotton On Kids has been slapped a fine of $1 million for breaching fire safety standards.

The Federal Court in Victoria has ruled that Cotton On Kids sold children’s nightwear that did not mean fire safety standards. Aside from the $1 million fine that should be paid within 15 months, Justice Richard Tracey also ruled that the company should contribute some $5000 for the legal costs.

The Federal Court also has imposed a four-year ban on Cotton On Kids and Cotton On. The company is not allowed to sell children’s nightwear in the next four years unless accredited fire-safety testers give a written document on the safety of its children’s nightwear.

The company should also implement compliance programs for the next three years. If Cotton On does not comply, its directors are facing jail time.

The Australian Competition and Consumer Commission was the body that pursued the legal action. The ACCC alleged in 2010 that Cotton On Kids’ night gowns and pjyamas were unsafe. The company continued marketing the line and only recalled it in 2011.

ACCC found that the pyjama set and one specific nightdress line burned faster than what is prescribed by Standards Australia. Although Cotton On said that the products were designed, taking into account fire safety regulations, it was found that the company did not.

Cotton On is one of the most successful retail companies in Australia with more than 900 stores in the country. It also employs more than 15,000 employees.