ACCC summary of supplier conference on proposed compulsory recall of specified Takata airbag inflators

Published: 
13 Nov 2017

Group of people at meeting

On 9 October 2017, the Australian Competition and Consumer Commission (ACCC) held a conference with suppliers and interested parties on the proposed recall notice in relation to motor vehicles with specified Takata airbag inflators and specified salvaged Takata airbag inflators (consumer goods).

The purpose of the conference was to provide suppliers affected by the proposed compulsory recall, in the terms of the Draft Recall Notice (DRN), with an opportunity for their views to be heard. As a part of the consultation process the ACCC also sought written submissions.

As soon as practicable after the conference, the ACCC will make a written notice of recommendation to Government in advising the Minister for Small Business, the Hon. Michael McCormack  to either issue a recall notice in the same or modified terms as the draft recall notice, or to not issue the recall notice. A copy of the ACCC’s written notice of recommendation will be given to the suppliers and interested parties who attended the conference.

A summary of the conference and public submissions received can be viewed on the ACCC's Consultation Hub.

Background

On 6 August 2017, the Minister issued a Safety Warning Notice about defective Takata airbags and announced the ACCC’s safety investigation.

The ACCC’s investigation established that Takata airbags without a desiccant (or drying agent) or with a calcium sulphate desiccant have a design flaw that can, over a period of years, lead to the degradation of the phase stabilised ammonium nitrate (PSAN) propellant, and ultimately this may result in misdeployment of the airbags, causing serious injury or death to vehicle occupants.

On 21 September 2017, following the ACCC investigation, the Minister issued a proposed compulsory recall notice for all vehicles with defective Takata airbags. This proposed recall extends beyond the current 2.49 million vehicles currently subject to voluntary recalls by manufacturers to include an estimated additional 877,000 non-recalled vehicles.