Busby Holding’s subsidiary, Brand Republic, has paid $51,000 in infringement fines for selling non-compliant Gap baby clothing.

The penalties and undertaking to the Australian Competition and Consumer Commission (ACCC) relate to product safety standards.

The ACCC found Brand Republic sold five different children’s items with fire hazard warning labels attached in incorrect positions.

The local licensee first brought the iconic fast fashion denim retailer, Gap, and its baby diffusion to Australia in 2010.

It has opened three stores at Melbourne Central, Chadstone Shopping Centre, and Westfield Sydney, as well as an outlet store.

As reported in Inside Retail PREMIUM on Friday, Brand Republic is now likely to lose the license to Oroton Group next month.

Inside Retail understands the ink will be dried on Oroton and Gap’s agreement by the end of the month.

Compliance warning for retailers

The non-compliant products sold by Brand Republic in Australia included one piece garments and pyjamas for children.

The fire hazard warning labels were attached on a side seam. Australian standards require the labels to be attached on the inside back neck.

Three of the garments were also sold in packaging that was not marked with fire hazard information and obscured the garment’s warning labels.

“The labeling requirements of the standard are very important as they are designed to reduce the risk of burn injuries to children,” said Delia Rickard, deputy chair of the ACCC.

“The ACCC will not hesitate to take enforcement action when businesses put consumers’ safety at risk, particularly the safety of children.”

Brand Republic has agreed to publishing recall notices, and will provide refunds to consumers that return the items.

Previous more serious breaches of a similar nature include Cotton On and Dimmeys, with Cotton On selling nightwear too flammable for sale.