Qantas has been fined $200,000 for selling banned products known as Nanodots through its duty free program. Nanodots had been banned from sale pursuant to a consumer protection notice due to the health risks posed to children.
The Federal Court stated that outsourcing the identification and supply of products for its duty free program to Alpha Flight Services, did not relieve Qantas of the obligation to ensure that its duty free program complied with the law. This was reflected, at least in part, in the Court’s decision to impose a larger penalty on Qantas than it imposed upon Alpha Flight Services. The statement in the duty free catalogue that the products were not for children was not to the point as the products were banned from sale. The Court was also critical of Qantas’ systems for dealing with the matter after it was informed that the Nanodots had been banned from sale. The decision in Director of Consumer Affairs Victoria v Alpha Flight Services Pty Ltd was handed down in December 2014.