The Commerce Commission's prosecution of Baby Factory (NZ) Limited is a message to all businesses: if they ignore advice or warnings from the Commission, then they can expect to face court action.

Commission Chairman Peter Allport said that the message applies particularly to product safety standards. The Commission always views breaches of product safety standards seriously and follows-up its enforcement action.

The Commission had previously warned Baby Factory that it was at risk of breaching the Fair Trading Act because it was selling children's night clothes that did not have the correct fire warning labels. The Commission also offered advice about what the safety standard requires.

But in October last year Baby Factory was again selling children's night clothes that did not have the correct fire warning labels.

The breach has now cost the company $8,100 in fines and costs after it pleaded guilty in the Auckland District Court.

"Courts take such breaches seriously," Mr Allport said. "This was a first conviction and a breach at the lower end of the scale, but it still cost Baby Factory $8,100 in court, plus its own legal fees and bad publicity."

In this case Baby Factory distributed 960 pairs of incorrectly labelled pyjamas made from flammable fabric.

The safety standard requires that both trousers and jackets of two-piece pyjama sets made from flammable fabrics have red labels stating: "Warning: Flammable fabric styled to reduce fire danger NZS 8705". None of the 31 pairs of pyjama trousers checked in Baby Factory shops in Auckland, Porirua, Lower Hutt and Christchurch had any fire warning labels.

The standard is designed to protect children from the dangers of wearing flammable, loose-fitting or flowing garments around fires or heaters. It was introduced in 1987 after children suffered serious burns when the flammable night clothes they were wearing caught fire.

Background - Children's night clothes product safety standard

Contrary to popular belief, most varieties of cotton ignite easily and burn readily. Garments made even partly from cotton - as were the pyjamas in this case - are highly likely to be flammable.

Form fitting garments made from flammable fabric must be labelled "Warning: Flammable fabric styled to reduce fire danger NZS 8705". The pyjama trousers should have had these labels but did not.

Garments made from low fire danger fabrics may be loose fitting and must be labelled "Low fire danger fabric NZS 8705".

Loose-fitting garments made from flammable fabric are prohibited.

Media contact: Fair Trading Manager Rachel Leamy

Phone work (04) 498 0908

Communications Officer Vincent Cholewa

Phone work (04) 498 0920

Commission media releases can be viewed on its website www.comcom.govt.nz