29 June 2015

Penalties for not displaying an Energy Rating Label  on a GEMS product

Do you know what could happen if you don't comply with GEMS Labelling Requirements? Make sure you know the facts.

Section 16

Section 16 of the GEMS Act Supplying GEMS products—complying with GEMS determinations states that

“a person must not supply, or offer to supply, a GEMS product if … a requirement of the GEMS determination is not complied with in supplying, or offering to supply, the product.”

GEMS labelling requirements

A requirement to display an ERL, if applicable to that GEMS product, is covered by the relevant determination’s GEMS labelling requirements.

The maximum criminal or civil penalty  a court may impose for a contravention of this section is 60 penalty units for a Category A product and 120 penalty units for a Category B product.

Assuming the relevant GEMS product is a Category A product, which is mostly the case, the maximum penalty therefore will be 60 x $170 = $10,200 per product.  The amount of a penalty unit is regulated by section 4AA(1) of the Crimes Act 1914 and is currently set at $170. However, the GEMS Regulator has the option of giving an infringement notice as an alternative to seeking civil penalties.  In this instance, the penalty for an alleged contravention is one-fifth of the maximum penalty that a court could impose for the contravention.  In the above example that would be $2,040.

More information

Visit the legislation page for more information about the Australian and New Zealand regulations.