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TRADE MEASUREMENT ADVISORY COMMITTEE TRADE MEASUREMENT REVIEW PROPOSAL FOR AMENDMENT AVERAGE QUANTITY SYSTEM October 2000
Under a formal agreement signed in 1990 between the Commonwealth, the States and the Territories (except Western Australia), all jurisdictions, with the exception of Western Australia, enacted model uniform trade measurement legislation. In 1995 a Trade Measurement Advisory Committee ("TMAC") was formed by the Ministerial Council on Consumer Affairs ("MCCA") and one of its functions was the ongoing review of trade measurement legislation nationally. TMAC has recommended that the trade measurement legislation be amended to improve trade measurement administration and MCCA has requested that Queensland proceed with drafting the recommended amendments to the Queensland Trade Measurement Act 1990 ("the Act"). In the interests of uniformity these amendments will be used as the model by the other participating States and Territories to amend their own legislation. Note: The numbering of the Act and Regulations in this document refers to the Queensland legislation. It may differ from that of other States and Territories. This paper addresses one of the proposed amendments and is forwarded to your organisation for comment because of your involvement in the relevant industry. Only those amendments that relate to the operation of your organisation have been forwarded to you for comment. This paper addresses the proposal to in relation to the Average Quantity System:
However, should you wish to comment on the other amendments to the legislation, please contact this Office so that a copy of the relevant consultation papers can be forwarded to you. In relation to those traders who package goods by length or width, area or count, further information in relation to the effect of this amendment on their business activities can be obtained by contacting the Manager of the Trade Measurement Section of the Office of Fair Trading as detailed below. Other Amendments The other amendments for which Issues Papers have been prepared are: 1. "Amendment to Section 28 of the Trade Measurement (Pre-packed Articles) Regulation 1991" - Section 28 of the Trade Measurement (Pre-packed Articles) Regulation 1991 should be amended by repealing the Table and requiring the products listed in sub-regulation (1) to be unit priced only when packed in random mass packs. Section 28 should also be amended to remove the references to `fruit' and `vegetables'. 2. "Amendment of the Trade Measurement Act 1990 - Firewood" - The provisions of the Trade Measurement Act 1990 should be amended to make it a requirement to "stack" firewood for sales by volume. Definitions of "stacked" and "firewood" are also seen as a requirement. (This does not preclude firewood being sold by reference to mass or per load.) 3. A new section 15(1)(c) be added to the Act which states that the administering authority `may provide for certification periods to be set'. Section 15(2) of the Act be re-written so that it relates to the new section 15(1)(c) and states that the administering authority `may provide for the certification of a measuring instrument as often as is necessary or desirable in relation to specified classes of instruments' 4. "Amendment of the Trade Measurement Act 1990 and the Trade Measurement (Weighbridges) Regulation 1991 - Certificates of Suitability" - The Trade Measurement Act 1990 and the Trade Measurement (Weighbridges) Regulation 1991 should be amended to remove the separate requirement for certificates of suitability for public weighbridges and a requirement which incorporates the certificate of suitability as part of the licence be made. 5. "Amendment of Section 23(1) of the Trade Measurement (Weighbridges) Regulation 1991" - Section 23(1) of the Trade Measurement (Weighbridges) Regulation 1991 should be amended to make the provision of tare mass books optional. 6. "Amendment of Section 23(2), (3) and (4) of the Trade Measurement (Weighbridges) Regulation 1991" - Section 23(2), (3) and (4) of the Trade Measurement (Weighbridges) Regulation 1991 should be amended to allow for the electronic printing and storage of measurement tickets. 7. "Amendment of Section 19(b) of the Trade Measurement (Pre-packed Articles) Regulation 1991" - Section 19(b) of the Trade Measurement (Pre-packed Articles) Regulation 1991 be amended by deleting the existing words and replacing them with:
This would also require the deletion of the reference to eggs in section 18(1)(a) of the Regulation. 8. "Amendment of Section 25 of the Trade Measurement Act 1990" - Section 25 of the Trade Measurement Act 1990 should be repealed to remove the "Special provisions for sale of meat". National Competition Policy You are also asked to comment on the implications that the Average Quantity System and the repeal of the current shortweight provisions may have in terms of the National Competition Policy review of legislation. Under the Competition Principles Agreement signed by the States, Territories and the Commonwealth, it was agreed that existing legislation and proposed legislation would be reviewed in terms of its impact on competition in the relevant market. The Agreement provides that:
The review that is to be conducted should: "(a) clarify the objectives of the legislation;
The specific issues that you are asked to address are set out in the body of this Issues Paper.
Unless there is an indication from you that you wish your submission to remain confidential, your submission may be subject to release under the Freedom of Information Act 1992 (Qld). Background The Average Quantity System is a system for the determining the measurement of packaged goods with constant nominal content. It provides for the confirmation of goods sold by weight, measure or number by utilising sampling standards based on those developed by the International Organisation for Standardisation and others such as the United States Military Specification. Currently, the method of determining a deficiency in packaged goods is administered by what is known as a minimum quantity system. This means that a package marked with a statement of the quantity which the package contains must contain at least that quantity. This applies throughout the distribution system. The current legislation allows deficiencies of no more than 5% in any one package provided the contents of that package and eleven other randomly selected packages of the same kind and stated quantity show no aggregate deficiency. A Discussion Paper was prepared and distributed in 1997. This appears as Attachment A to this paper. The Discussion Paper contains further information about the Average Quantity System and the possible benefits involved in adopting the Average Quantity System. Part V of the Trade Measurement (Pre-packed Articles) Regulation 1991 provides for: · The extent of deficiency necessary to constitute short measure; · Articles marked "mass when packed", etc; · Articles marked "mass at standard condition"; · Other pre-packed articles; · The method of determining average measurement for the purposes of section 33 of the Trade Measurement Act 1990. The provisions in Part V of the Regulation, sections 33-37, provide that for most pre-packed articles a deficiency is allowed on any individual pre-packed article of 5% and that the average deficiency over a sample of 12 pre-packed articles is nil. There are some specific provisions for a number of listed products and they are permitted to have higher deficiencies and may have average deficiencies over a sample of 12 pre-packed articles, when measured the day after the article is packed. These particular provisions apply only if the package is marked "mass when packed" and the package is not hermetically sealed. The tables listing the various products are:
Proposal for Amendment It is proposed that the Average Quantity System be introduced into the legislation and that the current shortweight provisions be repealed. This would include repealing "mass when packed" and "mass at standard condition" provisions. The method of determining what is a deficiency needs to be fair to both consumers and packers and needs to ensure that the statement of the quantity contained in packaged goods is meaningful to consumers to allow them to make informed decisions when they select and purchase goods. A change to the Average Quantity System will align the requirements for determining what constitutes a deficiency on pre-packed articles in Australia (and New Zealand) with internationally accepted practice. To apply the Average Quantity System correctly, there are three rules: Rule 1 The declared quantity on a package should accurately reflect the quantity being supplied, so the average net contents of the packages in a lot (production run) may not be less than the declared quantity. Rule 2 No more than 2.5% of the packages in a lot (production run) may have negative errors more than the prescribed tolerable negative error. Rule 3 No package shall have a negative error by more than twice the prescribed tolerable negative error. All of these rules must be applied together. The method of determining a deficiency is provided by using a statistically based sampling procedure. This will mean that any sample inspected will be more representative of the production than the current selection of 12 packages at random. It is appropriate to ensure than on average packages contain the declared quantity and the average requirement will provide protection to consumers who purchase more than one package of a particular product. Generally a deficient package will be averaged out by an overfilled one. Some manufacturers and packers have concerns in relation to articles that loose weight due to dehydration. These articles are known as desiccating goods. Consumers also have equal concerns that provisions for "desiccating goods" do not allow manufacturers and packers to provide short quantity goods throughout poor or negligent packaging practice. The proposal for amendment is that provisions used in the European Union be incorporated into the changes. These would provide that "desiccating goods" must comply with the provisions for the Average Quantity System for a period of 7 days after the day of manufacture or packing. After the 7 day period has elapsed, the "desiccating goods" must measure within double the usual tolerance allowed. This provision will give consumers greater assurance than they currently have with "desiccating goods". ie. those currently listed in the tables to sections 34 and 35 of the Regulation. The provision will not impose adverse requirements on manufacturers and packers, but will recognise that quantities of some products are difficult to control. It is further proposed that a provision to prevent any "desiccating goods" being put onto the market in an excessively deficient manner. That is, "desiccating goods" should never be deficient by more than twice the tolerable negative error. The Average Quantity System has been adopted in a number of countries and international organisations. These countries are listed in the Discussion Paper which appears as Attachment A to this paper. The primary objective of trade measurement legislation is to promote fair trading and accuracy in the relevant market places. Trade measurement authorities are responsible for ensuring that traders and consumers are confident that goods are bought and sold in a fair and equitable manner. National Competition Policy guidelines provide that the benefit to the restriction to the community should outweigh the costs and that the objectives of the legislation cannot be achieved by any other means. Both traders and consumers will benefit from this amendment and the amendment should not result in any restriction on competition. The rules on the standard of quantity statements will be clearer for both packers and consumers. Packers can adopt the rules in their quality management systems and they will be more confident that their goods will comply with the legislation. Packers will also not need to change equipment in order to comply with the Average Quantity System. Consumers will know that they have a 97.5% chance of receiving the stated quantity within the prescribed tolerance. The Average Quantity System should also reduce technical barriers to trade and provide an internationally accepted standard. You are invited to comment on the amendment. In particular your comments in relation to the following questions are welcomed: 1. Should the Average Quantity System be introduced and should the current shortweight provisions be repealed as described? Why do you think so? This includes repealing `mass when packed' and `mass at standard condition' provisions. 2. Will the amendment as described have any impact on you whether you are a trader or a consumer? 3. If it is considered that the amendment will impact on you, can you describe the potential costs to you either as a trader or a consumer? 4. Are there any potential restrictions involved in the proposed amendment? 5. If there are considered to be any restrictions, will these restrictions involve any cost or disadvantage to you either as a trader or consumer? 6. Will the proposed amendment have any impact on competition in the market place in which you either trade or purchase goods? If so, what impact will it have? 7. Are there any other issues that you consider relevant? If you are interested in participating in follow up consultation on these issues, please provide us with a telephone number where you can be contacted during office hours. |
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© Commonwealth of Australia 2000 Ministerial Council on Consumer Affairs www.consumer.gov.au
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