Consumer Goods (Care Labelling) Information Standard 2023

Regulated goods are defined broadly in section 6 as any clothing, household textiles, apparel (including wedding dresses, christening gowns, promotional, sample and flawed articles), furnishings, upholstered furniture, bedding (including sleeping bags), mattresses, bed bases, piece goods and yarns made from textiles, plastics, plastic coated fabrics, suede, skins, hides, grain leathers and/or furs. The definition is not limited to finished consumer goods; it extends to piece goods and yarns, meaning upstream suppliers may also be caught. Exempt goods are listed exhaustively in section 7. They include second hand goods, many accessory items (handkerchiefs, braces, belts, headwear), all footwear except hosiery and textile materials used in manufacture, various drapery and haberdashery items, furnishings like floor coverings and lampshades, jute products, medical and surgical goods, canvas umbrella coverings, and a long list of miscellaneous goods (toys, umbrellas, shoelaces, disposable items, mops, bags and cases). The exemptions are generous but specific; classification of a product often depends on its intended use or material composition.

The transitional concept is central. The first transitional period is six months from commencement; during that time compliance can be with the varied AS/NZS 1957:1998 or the old 2010 standard. The second transitional period is the following twelve months; during that time compliance can be with the varied AS/NZS 1957:1998, the old 2010 standard, or the International Standard. Oversupply or clearing of old stock during these periods will be allowed. After the second transitional period, only the two standards options remain.

The Australian/New Zealand Standard (AS/NZS 1957:1998) as adopted is not the standard in its original form: the instrument omits, substitutes, and adds several clauses. Businesses cannot simply buy the standard and comply; they must apply the variations set out in section 11. The International Standard (ISO 3758:2012) is adopted without variation; compliance requires meeting Clause 4 of that standard, which sets out the care symbols and their meanings. The instrument does not reproduce the text of either standard; suppliers must purchase them separately or view them at an ACCC office (subject to licensing). This creates an additional cost and barrier to understanding the legal requirements.

The instrument is an information standard under the ACL. Breach is a contravention of a safety or information standard, attracting penalties under the ACL. The instrument does not create any private rights of action, but failure to comply may expose suppliers to infringement notices, injunctions, or prosecution by the ACCC.

The instrument affects any person who supplies regulated goods in trade or commerce in Australia. This includes manufacturers, importers, wholesalers, and retailers of clothing, household textiles, furnishings, bedding, mattresses, upholstered furniture, and many other textile products. It also affects suppliers of piece goods and yarns, though they may rely on exemptions if their goods are sold to commercial customers who further process them (but the exemption is only if the goods are not regulated, which they are if covered by section 6; there is no exemption for intermediate suppliers). Small businesses especially will feel the compliance burden: they must determine whether their goods are regulated or exempt, understand the transitional periods, purchase or access the relevant standards, and update labels accordingly. The cost of reprinting labels, changing packaging, and managing stock may be significant.

Consumers are indirectly affected as the beneficiaries of clearer care instructions, but their effective choice is reduced if labels become more symbols based and less word based. The International Standard relies heavily on symbols, and while Annex C of that standard provides examples of additional wording, it is not mandatory to use words. Consumers who cannot interpret symbols may lose access to clear care instructions. The instrument’s variation to clause 2.1.3 requires that articles unable to be washed or drycleaned must include words warning that the article cannot be washed or drycleaned, and words describing the care treatment. This is a protection for consumers, but only for a specific subset of goods.

The ACCC is the enforcement body, but it does not pre approve labels. Suppliers bear the entire risk of non compliance. The instrument applies uniformly across all states and territories because the ACL is applied as a law of each jurisdiction. There is no exemption for online sales or goods sold directly from overseas; the supplier in Australia (the importer or the local entity) is responsible.

The primary duty is on suppliers of regulated goods: they must ensure that during the applicable transitional period (and after) the goods bear care labelling that complies with one of the permitted standards. The duty is not to have the most helpful label, but to meet the technical requirements of the chosen standard. The instrument gives suppliers a right to choose which standard to follow, within the transitional windows. This choice has economic implications: the International Standard may be cheaper to implement for goods sold in multiple markets, but its symbols based approach may not satisfy consumer expectations in Australia. The Australian/New Zealand Standard, as varied, retains a larger role for words and may be more familiar to local consumers.

Suppliers have the right to use removable labels or tickets for certain goods listed in the new clause 2.5 of the varied standard. That clause lists specific types of made up goods (collars, neckwear, gloves, hosiery, many haberdashery items, shower curtains, etc.) for which a permanent label is not required, provided care instructions accompany the goods on a removable ticket, pamphlet, or packaging. This flexibility reduces compliance costs for those items.

Suppliers also have the right to use alternative wording for certain care instructions, as permitted by the new clause 2.4 (examples include rewording “DO NOT SOAK IN PRODUCTS CONTAINING ENZYMES” as “DO NOT SOAK IN PRODUCTS WITH ENZYMES” or similar). This is a clarification intended to allow plain English variations, but it does not give carte blanche to omit required information; the meaning must be similar.

Consumers have no express rights under the instrument itself, but they may rely on the ACL’s consumer guarantees (fit for purpose, acceptable quality) if care labels are misleading or if following them causes damage. The instrument does not create a right to sue for a label that is technically non compliant; that is a regulatory matter for the ACCC.

Contravention of an information standard made under section 134 of the ACL is a strict liability offence under section 136 of the ACL. For a body corporate, the maximum penalty is the greater of $50 million, three times the value of the benefit obtained, or 30% of adjusted turnover during the breach period (for serious contraventions). For individuals, the maximum penalty is $2.5 million. These are the standard ACL penalties for safety and information standard breaches. The instrument does not specify alternative penalty amounts; it relies on the ACL regime.

The ACCC enforces the standard. It can issue infringement notices (maximum penalty of $66,600 for a body corporate and $13,320 for an individual for each alleged contravention). It can also seek injunctions to stop supply of non compliant goods, require corrective labelling, or ask for recalls. Given that the instrument is relatively new, there is as yet no public enforcement history specific to it. However, the ACCC has previously pursued suppliers under the 2010 standard, including for failures to include care labels or for making false care claims. Suppliers should anticipate similar vigilance.

The instrument does not create a private right of action for competitors or consumers. Only the regulator may bring proceedings. That said, a contravention of the standard may be evidence of misleading or deceptive conduct under section 18 of the ACL, which consumers could use in private actions. The standard itself does not impose any record keeping obligations, but to defend against enforcement a supplier may need to show which standard was relied upon and that the goods complied.

The instrument operates under the ACL, which is Schedule 2 to the Competition and Consumer Act 2010. As an information standard, it has the same legal force as a mandatory safety standard. It applies alongside other ACL requirements: for example, care labels must not be false or misleading (section 18), and goods must match any description applied (section 29). The standard does not override other product specific labelling requirements. For example, textiles subject to the Consumer Goods (Fire Hazard Information) Standard must still include fire hazard warnings. The instrument does not address retailer liability; the supplier (person who supplies in trade or commerce) is liable, but a retailer who sells non compliant goods could also be liable if they are the first supplier in the chain or if they knew or ought to have known.

The instrument applies as a law of each state and territory because the ACL is adopted by each jurisdiction. There is no conflict with state based fair trading laws; they are harmonised through the ACL. The instrument does not affect international trade obligations. The availability of the International Standard as an option may assist compliance with foreign labelling requirements for dual market goods, but the instrument only mandates compliance for goods supplied in Australia.

The repeal of the 2010 standard means that the previous standard no longer applies to any goods supplied after the second transitional period ends. However, goods supplied before the repeal date may still be sold after that date if they were lawfully labelled under the old standard and were in the supply chain at the time of repeal. The transitional periods are designed to allow clearance of old stock, but careful legal advice may be needed for borderline cases.

This instrument is a new legislative instrument, not an amendment to an existing one. It was made on 28 August 2023 and registered the same day. It commenced on 5 September 2023 (the day after registration). It repeals the whole of the Consumer Product Information Standard Care Labelling for Clothing and Textile Products (Consumer Protection Notice No. 25 of 2010). There are no subsequent amendments to this instrument as at the time of writing. The instrument itself contains sunsetting provisions: sections 8 and 9 are repealed at the end of their respective transitional periods. Section 8 (first transitional period requirements) is repealed after 5 March 2024. Section 9 (second transitional period requirements) is repealed after 5 March 2025. After that, only section 10 and the provisions in Part 3 apply. This structure is unusual: it means the instrument will change its own operative provisions automatically over time, reducing clarity for later users who may not notice the repealed sections.

The instrument is made under subsection 134(1) of the ACL, which allows the Minister to make information standards. It is a legislative instrument but not subject to disallowance if it is a standard or code of practice (parliamentary oversight may be limited). The repeal of the 2010 standard is automatic through Schedule 1. There is no amendment power within the instrument; any future changes would require a new instrument.

There is no litigation history specific to this 2023 instrument because it only commenced one year ago and has not yet been tested in court. The previous 2010 standard was the subject of some ACCC enforcement actions, including issuing infringement notices for failure to label or for misleading care claims. For example, the ACCC has taken action against clothing importers for failing to have care labels at all. Those cases arose under the old standard, but the principles carry over: strict liability applies, and the ACCC has shown willingness to pursue non compliance. The variations in the new instrument, particularly the relaxation of some requirements (e.g., removal of same side rule, optional “do not dry clean” symbol), may reduce technical non compliance risks but may also create new interpretative disputes. For instance, what constitutes “adequate” care instructions under the substituted clause 2.1.1(a) may be litigated. The new clause 2.4 on alternative wording may also be tested: does “DO NOT SOAK IN ENZYME PRODUCTS” have a similar meaning to the original? Courts will look at the substance, but the instrument does not define “similar meaning”. There is no case law yet.

Suppliers should also be aware that the instrument’s reliance on two external standards (AS/NZS and ISO) may lead to disputes about which version is incorporated. The definitions say “as in force or existing at the time when this instrument commences”, meaning the 1998 and 2012 versions respectively, not later amendments. If either standard is updated, suppliers must still use the frozen version. This could lead to confusion if a supplier inadvertently uses a newer version of the ISO standard.

Several traps await the unwary. First, the transitional periods are short and non intuitive. The first transitional period is only six months; the second is twelve months. Many businesses with long production lead times may not have updated labels in time. The instrument does not allow use of the old 2010 standard after the second transitional period ends, even if goods were manufactured before that date but supplied later. Suppliers must plan label changes accordingly.

Second, the Australian/New Zealand Standard as varied is not the standard as published. To comply, one must purchase the standard and then apply the fifteen subsections of section 11 that delete, substitute, or add clauses. This is error prone. A supplier who buys the standard and follows it without applying the variations will be non compliant. For example, the original AS/NZS 1957:1998 clause 2.1.1(a) required that care instructions take into account all elements; the instrument substitutes a much longer and more prescriptive version that includes specific mention of dyes, finishes, etc. The original standard required that words and symbols appear on the same side of the label; the instrument omits that requirement, allowing separation.

Third, the exemptions are detailed but may be missed. For example, “remnants” are exempt only if labelled with a specific disclaimer: “cushion cover manufactured from remnant/s, care treatment unknown”. A supplier who sells cushion covers made from remnants without that disclaimer may find the exemption does not apply. Likewise, “articles designed to be disposed of after one use” are exempt, but this is limited to those “except where specifically included” - meaning if a disposable item is made from textiles and falls within the definition of regulated goods (e.g., a disposable garment), it might not be exempt. The list is exhaustive but open to interpretation.

Fourth, the International Standard option may seem easier, but it is not necessarily simpler. ISO 3758:2012 clause 4 sets out symbols; it also requires that if words are used, they must not contradict the symbols. A supplier using words alongside symbols must ensure consistency. The instrument’s note points to Annex C for examples of additional wording, but that annex is non mandatory. Suppliers who use words that conflict with symbols risk non compliance. Also, the International Standard does not require English language, but the instrument requires that the label be in English (see varied clause 2.2(c) - that requirement applies only when complying with the Australian/New Zealand Standard, not the International Standard). But the ACL’s general prohibitions on misleading conduct may still require that a label using only foreign symbols or words be comprehensible to Australian consumers.

Fifth, the new clause 2.5 expands the list of goods that may use removable labels rather than permanent labels. However, the exemption only applies “where a permanent label is not provided”; it does not excuse the need for care instructions entirely. Businesses must ensure that a removable ticket, pamphlet, or packaging includes the care instructions. If the removable label is lost, the goods become non compliant. For many items like hosiery, this is workable, but for items like “incontinence garments”, the challenge is to ensure the instructions accompany the product through to sale.

Sixth, the “do not dry clean” symbol is optional. This appears to be a relaxation, but it may cause confusion if a supplier omits the symbol for a garment that cannot be drycleaned but also fails to warn in words. Article that cannot be washed or drycleaned must have words under clause 2.1.3. The optional nature of the symbol does not relieve the duty to warn in words for that category.

Seventh, the instrument does not specify a format or minimum size for labels. The standard may have its own legibility requirements, but there is no explicit font size. This leaves room for subjective interpretation by the ACCC.

First, determine whether the goods are regulated or exempt. Check the definitions in section 6 and the exemptions in section 7. If the goods fall within an exemption, no care label is required under this standard (but other laws may apply). Note that mixed products (e.g., a upholstered chair with textile cover) may be regulated for the textile components; the entire article may need a label.

Second, identify the applicable transitional period. As of early 2025, we are likely in the post second transitional period (after 5 March 2025), so the old 2010 standard is no longer an option. The only permitted options are the varied AS/NZS 1957:1998 or the International Standard ISO 3758:2012. Choose which to follow. Consider your export markets: if you sell into markets that require ISO symbols, using the International Standard may reduce labelling costs. If you sell primarily in Australia and your customers prefer words, the varied AS/NZS may be more appropriate.

Third, obtain the relevant standard. AS/NZS 1957:1998 can be purchased from SAI Global or Techstreet. ISO 3758:2012 is available from ISO or Techstreet. The ACCC can make copies available for viewing only. For the Australian/New Zealand Standard, you must then apply the variations in section 11. Carefully compare each variation: omit clauses 1.1-1.4, use substituted clause 2.1.1(a), omit “on the same side” from clause 2.1.2(a), use substituted clause 2.1.3, omit clauses 2.2(a) and (b), use substituted clause 2.2(c), use added clause 2.4, and use added clause 2.5 for removable labels. For clause 3.4 omit “each of”, for 3.5 omit “each of”, for 3.6 substitute “the categories” and omit third sentence, and add the optional “do not dry clean” symbol note. It may be prudent to create an internal compliance manual that reproduces the standard as varied.

Fourth, design the label. Ensure it includes appropriate and adequate care instructions as defined by the varied clause 2.1.1(a). The instructions must cover cleaning and maintenance and, if followed, must not cause damage to the article. For the International Standard, follow clause 4 of ISO 3758:2012. Both standards allow use of symbols; the varied AS/NZS also allows additional words. Ensure any wording is in English (for the AS/NZS route). For goods that cannot be washed or drycleaned, the label must include words warning of that and describing the care treatment (clause 2.1.3). For goods using the AS/NZS with removable labels, verify that the goods fall within clause 2.5 and that the care instructions are provided on a removable ticket, pamphlet, or packaging.

Fifth, attach the label permanently to the goods (unless exempt under clause 2.5). For upholstered furniture or mattresses, the label must be affixed to the article. For piece goods and yarns, a label on the roll or bolt may suffice. Ensure the label is clearly legible.

Sixth, maintain records. Although not required by the instrument, in the event of an ACCC investigation, you will need to show which standard you relied on and how you ensured compliance. Retain copies of the standard, any design rationale, and samples of labels.

Seventh, review labelling cycles. After the transitional periods, labels for goods already in the supply chain that were compliant under the old 2010 standard may still be sold, but if the goods are supplied to consumers after the second transitional period ends, they must comply with one of the two current standards. This means you may need to relabel old stock or expedite sell through before the deadline.

Eighth, watch for future amendments. The instrument does not provide for automatic updating of standards. If you use the International Standard and ISO subsequently updates it, you are still required to use the 2012 version. Keep an eye on any new legislative instruments that may update this standard.

Finally, consider seeking legal advice if in doubt, especially regarding borderline exempt goods or the application of other ACL provisions. The ACCC can provide guidance, but it does not pre approve labels. The onus is squarely on the supplier.