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TRADE PRACTICES REVISION ACT 1986 No. 17 of 1986 - SECT 35
35. After Division 1 of Part V of the Principal Act the following Division is
inserted:
"Division 1A-Product Safety and Product Information
Warning notice to public "65B. (1) The Minister may publish a notice in
writing in the Gazette containing one or both of the following:
(a) a statement that goods of a kind specified in the notice are under
investigation to determine whether the goods will or may cause injury
to any person;
(b) a warning of possible risks involved in the use of goods of a kind
specified in the notice.
"(2) Where-
(a) an investigation referred to in sub-section (1) has been completed;
and
(b) neither a notice under section 65J inviting a supplier to notify the
Commission whether the supplier wishes the Commission to hold a
conference nor a notice under section 65L has been published in
relation to the goods since the commencement of the investigation, the
Minister shall, as soon as practicable after the investigation has
been completed, by notice in writing published in the Gazette,
announce the results of the investigation, and may announce in the
notice whether, and if so, what action is proposed to be taken in
relation to the goods under this Division.
Product safety standards and unsafe goods "65C. (1) A corporation shall not,
in trade or commerce, supply goods that are intended to be used, or are of a
kind likely to be used, by a consumer if the goods are of a kind-
(a) in respect of which there is a prescribed consumer product safety
standard and which do not comply with that standard;
(b) in respect of which there is in force a notice under this section
declaring the goods to be unsafe goods; or
(c) in respect of which there is in force a notice under this section
imposing a permanent ban on the goods.
"(2) The regulations may, in respect of goods of a particular kind, prescribe
a consumer product safety standard consisting of such requirements as to-
(a) performance, composition, contents, methods of manufacture or
processing, design, construction, finish or packaging of the goods;
(b) testing of the goods during, or after the completion of, manufacture
or processing; and
(c) the form and content of markings, warnings or instructions to
accompany the goods, as are reasonably necessary to prevent or reduce
risk of injury to any person.
"(3) A corporation shall not export goods the supply in Australia of which is
prohibited by sub-section (1) unless the Minister has, by notice in writing
given to the corporation, approved the export of those goods.
"(4) Where the Minister approves the export of goods under sub-section (3),
the Minister shall cause a statement setting out particulars of the approval
to be laid before each House of the Parliament within 7 sitting days of that
House after the approval is given.
"(5) Subject to section 65J, where it appears to the Minister that goods of a
particular kind will or may cause injury to any person, the Minister may, by
notice in writing published in the Gazette, declare the goods to be unsafe
goods.
"(6) A notice under sub-section (5) remains in force until the end of 18
months after the date of publication of the notice in the Gazette unless it is
revoked before the end of that period.
"(7) Subject to section 65J, where-
(a) a period of 18 months has elapsed after the date of publication of a
notice in the Gazette declaring goods to be unsafe goods; and
(b) there is not a prescribed consumer product safety standard in respect
of the goods, the Minister may, by notice in writing published in the
Gazette, impose a permanent ban on the goods.
"(8) Where-
(a) the supplying of goods by a corporation constitutes a contravention of
this section by reason that the goods do not comply with a prescribed
consumer product safety standard;
(b) a person suffers loss or damage by reason of a defect in, or a
dangerous characteristic of, the goods or by reason of not having
particular information in relation to the goods; and
(c) the person would not have suffered the loss or damage if the goods had
complied with that standard, the person shall be deemed for the
purposes of this Act to have suffered the loss or damage by the
supplying of the goods.
"(9) Where-
(a) the supplying of goods by a corporation constitutes a contravention of
this section by reason that there is in force a notice under this
section declaring the goods to be unsafe goods or imposing a permanent
ban on the goods; and
(b) a person suffers loss or damage by reason of a defect in, or a
dangerous characteristic of, the goods or by reason of not having
particular information as to a characteristic of the goods, the person
shall be deemed for the purposes of this Act to have suffered the loss
or damage by the supplying of the goods.
Product information standards "65D. (1) A corporation shall not, in trade or
commerce, supply goods that are intended to be used, or are of a kind likely
to be used, by a consumer, being goods of a kind in respect of which a
consumer product information standard has been prescribed, unless the
corporation has complied with that standard in relation to those goods.
"(2) The regulations may, in respect of goods of a particular kind, prescribe
a consumer product information standard consisting of such requirements as to-
(a) the disclosure of information relating to the performance,
composition, contents, methods of manufacture or processing, design,
construction, finish or packaging of the goods; and
(b) the form and manner in which that information is to be disclosed on or
with the goods, as are reasonably necessary to give persons using the
goods information as to the quantity, quality, nature or value of the
goods.
"(3) Sub-section (1) does not apply to goods that are intended to be used
outside Australia.
"(4) If there is applied to goods-
(a) a statement that the goods are for export only; or
(b) a statement indicating by the use of words authorised by the
regulations to be used for the purposes of this sub-section that the
goods are intended to be used outside Australia, it shall be presumed
for the purposes of this section, unless the contrary is established,
that the goods are intended to be so used.
"(5) For the purposes of sub-section (4), a statement shall be deemed to be
applied to goods if-
(a) the statement is woven in, impressed on, worked into or annexed or
affixed to the goods; or
(b) the statement is applied to a covering, label, reel or thing in or
with which the goods are supplied.
"(6) A reference in sub-section (5) to a covering includes a reference to a
stopper, glass, bottle, vessel, box, capsule, case, frame or wrapper and a
reference in that sub-section to a label includes a reference to a band or
ticket.
"(7) Where-
(a) the supplying of goods by a corporation constitutes a contravention of
this section by reason that the corporation has not complied with a
prescribed consumer product information standard in relation to the
goods;
(b) a person suffers loss or damage by reason of not having particular
information in relation to the goods; and
(c) the person would not have suffered the loss or damage if the
corporation had complied with that standard in relation to the goods,
the person shall be deemed, for the purposes of this Act, to have
suffered the loss or damage by the supplying of the goods.
Power of Minister to declare product safety or information standards "65E.
(1) The Minister may, by notice in writing published in the Gazette, declare
that, in respect of goods of a kind specified in the notice, a particular
standard, or a particular part of a standard, prepared or approved by the
Standards Association of Australia or by a prescribed association or body, or
such a standard or part of a standard with additions or variations specified
in the notice, is a consumer product safety standard for the purposes of
section 65C or a consumer product information standard for the purposes of
section 65D.
"(2) Where a notice is so published, the standard, or the part of the
standard, referred to in the notice, or the standard or part of a standard so
referred to with additions or variations specified in the notice, as the case
may be, shall be deemed to be a prescribed consumer product safety standard
for the purposes of section 65C or a prescribed consumer product information
standard for the purposes of section 65D, as the case may be.
"(3) Sub-section (1) does not authorise the publication of a notice in
relation to goods of a particular kind if the standard or the part of the
standard referred to in the notice, or the standard or the part of the
standard so referred to with additions and variations specified in the notice,
is inconsistent with a standard prescribed in relation to goods of that kind
by regulations made for the purposes of section 65C or 65D.
Compulsory product recall "65F. (1) Subject to section 65J, where-
(a) a corporation (in this section referred to as the 'supplier'), in
trade or commerce, supplies on or after 1 July 1986 goods that are
intended to be used, or are of a kind likely to be used, by a
consumer;
(b) one of the following sub-paragraphs applies:
(i) it appears to the Minister that the goods are goods of a kind
which will or may cause injury to any person;
(ii) the goods are goods of a kind in respect of which there is a
prescribed consumer product safety standard and the goods do
not comply with that standard;
(iii) the goods are goods of a kind in relation to which there is in
force a notice under sub-section 65C (5) or (7); and
(c) it appears to the Minister that the supplier has not taken
satisfactory action to prevent the goods causing injury to any person,
the Minister may, by notice in writing published in the Gazette,
require the supplier to do one or more of the following:
(d) take action within the period specified in the notice to recall the
goods;
(e) disclose to the public, or to a class of persons specified in the
notice, in the manner and within the period specified in the notice,
one or more of the following:
(i) the nature of a defect in, or a dangerous characteristic of,
the goods identified in the notice;
(ii) the circumstances, being circumstances identified in the
notice, in which the use of the goods is dangerous; or
(iii) procedures for disposing of the goods specified in the notice;
(f) inform the public, or a class of persons specified in the notice, in
the manner and within the period specified in the notice, that the
supplier undertakes to do whichever of the following the supplier
thinks is appropriate:
(i) except where the notice identifies a dangerous characteristic
of the goods-repair the goods;
(ii) replace the goods;
(iii) refund to a person to whom the goods were supplied (whether by
the supplier or by another person) the price of the goods,
within the period specified in the notice.
"(2) Notwithstanding sub-paragraph (1) (f) (iii), where the Minister, in a
notice under sub-section (1), requires the supplier to take action under
paragraph (1) (f), the Minister may specify in the notice that, where-
(a) the supplier chooses to refund the price of the goods; and
(b) a period of more than 12 months has elapsed since a person (whether or
not the person to whom the refund is to be made) acquired the goods
from the supplier, the amount of a refund may be reduced by the
supplier by an amount attributable to the use which a person has had
of the goods, being an amount calculated in a manner specified in the
notice.
"(3) The Minister may, by notice in writing published in the Gazette, give
directions as to the manner in which the supplier is to carry out a recall of
goods required under sub-section (1).
"(4) Where the supplier, under sub-section (1), undertakes to repair goods,
the supplier shall cause the goods to be repaired so that-
(a) any defect in the goods identified in the notice under sub-section (1)
is remedied; and
(b) if there is a prescribed consumer product safety standard in respect
of the goods-the goods comply with that standard.
"(5) Where the supplier, under sub-section (1), undertakes to replace goods,
the supplier shall replace the goods with like goods which-
(a) if a defect in, or a dangerous characteristic of, the first-mentioned
goods was identified in the notice under sub-section (1)-do not
contain that defect or have that characteristic; and
(b) if there is a prescribed consumer product safety standard in respect
of goods of that kind-comply with that standard.
"(6) Where the supplier, under sub-section (1), undertakes to repair goods or
replace goods, the cost of the repair or replacement, including any necessary
transportation costs, shall be borne by the supplier.
"(7) Where goods are recalled, whether voluntarily or in accordance with a
requirement made by the Minister under paragraph (1) (d), a person who has
supplied or supplies any of the recalled goods to another person outside
Australia shall, as soon as practicable after the supply of those goods, give
a notice in writing to that other person-
(a) stating that the goods are subject to recall;
(b) if the goods contain a defect or have a dangerous
characteristic-setting out the nature of that defect or
characteristic; and
(c) if the goods do not comply with a prescribed consumer product safety
standard in respect of the goods-setting out the nature of the
non-compliance.
"(8) Where a person is required under sub-section (7) to give a notice in
writing to another person, the first-mentioned person shall, within 10 days
after giving that notice, provide the Minister with a copy of that notice.
"(9) A person who contravenes sub-section (8) is guilty of an offence
punishable on conviction-
(a) in the case of a person not being a body corporate-by a fine not
exceeding $2,000 or imprisonment for a period not exceeding 12 months;
or
(b) in the case of a person being a body corporate-by a fine not exceeding
$10,000.
Compliance with product recall order "65G. Where a notice under sub-section
65F (1) is in force in relation to a corporation, the corporation-
(a) shall comply with the requirements and directions in the notice; and
(b) shall not, in trade or commerce-
(i) where the notice identifies a defect in, or a dangerous
characteristic of, the goods-supply goods of the kind to which
the notice relates which contain that defect or have that
characteristic; or
(ii) in any other case-supply goods of the kind to which the notice
relates.
Loss or damage caused by contravention of product recall order "65H. Where-
(a) a corporation contravenes section 65G by-
(i) supplying goods of a kind in relation to which a notice under
sub-section 65F (1) is in force; or
(ii) failing to comply with the requirements of such a notice; and
(b) a person suffers loss or damage by reason of a defect in, or a
dangerous characteristic of, the goods or by reason of not having
particular information as to a characteristic of the goods, the person
shall be deemed for the purposes of this Act to have suffered the loss
or damage by the supplying of the goods, or by the failure of the
corporation to comply with the notice, as the case may be. Opportunity
for conference to be afforded before certain powers exercised "65J.
(1) Subject to section 65L, where the Minister proposes to publish a
notice under sub-section 65C (5) or (7) or 65F (1) in relation to
goods of a particular kind, the Minister shall prepare-
(a) a draft of the notice proposed to be published; and
(b) a summary of the reasons for the proposed publication of the notice,
and shall, by notice in writing published in the Gazette, invite any
person (in this section referred to as a 'supplier') who supplied or
proposes to supply goods of that kind to notify the Commission, within
the period (in this section referred to as the 'relevant period') of
10 days commencing on the day specified in the last-mentioned notice,
being not earlier than the day on which that notice is published in
the Gazette, whether the supplier wishes the Commission to hold a
conference in relation to the proposed publication of the
first-mentioned notice.
"(2) A notice published under sub-section (1) shall set out a copy of the
draft notice under sub-section 65C (5) or (7) or 65F (1) and a copy of the
summary of the reasons for the proposed publication of the notice.
"(3) If no supplier notifies the Commission in writing within the relevant
period or within such longer period as the Commission allows that the supplier
wishes the Commission to hold a conference in relation to the proposed
publication of the notice under sub-section 65C (5) or (7) or 65F (1), the
Commission shall notify the Minister accordingly.
"(4) If a supplier notifies the Commission in writing within the relevant
period or within such longer period as the Commission allows that the supplier
wishes the Commission to hold a conference in relation to the proposed
publication of a notice under sub-section 65C (5) or (7) or 65F (1), the
Commission shall appoint a day (being not later than 14 days after the end of
that period), time and place for the holding of the conference, and give
notice of the day, time and place so appointed to the Minister and to each
supplier who so notified the Commission.
"(5) At a conference under this section-
(a) the Commission shall be represented by a member or members nominated
by the Chairman;
(b) each supplier who notified the Commission in accordance with
sub-section (4) is entitled to be present or to be represented;
(c) any other person whose presence at the conference is considered by the
Commission to be appropriate is entitled to be present or to be
represented;
(d) the Minister or a person or persons nominated in writing by the
Minister is or are entitled to be present; and
(e) the procedure to be followed shall be as determined by the Commission.
"(6) The Commission shall cause a record of proceedings at a conference under
this section to be kept.
"(7) The Commission shall, as far as is practicable, ensure that each person
who, in accordance with sub-section (5), is entitled to be present or who is
representing such a person at a conference is given a reasonable opportunity
at the conference to present his or her case and, in particular, to inspect
any documents which the Commission proposes to consider for the purpose of
making a recommendation after the conclusion of the conference, other than any
document that contains particulars of a secret formula or process, and to make
submissions in relation to those documents.
Recommendation after conclusion of conference "65K. As soon as is
practicable after the conclusion of a conference in relation to the proposed
publication of a notice under sub-section 65C (5) or (7) or 65F (1), the
Commission shall-
(a) by notice in writing given to the Minister, recommend that-
(i) the Minister publish the first-mentioned notice in the same
terms as the draft notice referred to in sub-section 65J (1);
(ii) the Minister publish the first-mentioned notice with such
modifications as are specified by the Commission; or
(iii) the Minister not publish the first-mentioned notice; and
(b) cause a copy of the notice in writing given to the Minister to be
given to each supplier who was present or represented at the
conference.
Exception in case of danger to public "65L. (1) Where it appears to the
Minister that goods of a particular kind create an imminent risk of death,
serious illness or serious injury, the Minister may, by notice in writing
published in the Gazette, certify that a notice in relation to the goods under
sub-section 65C (5) or 65F (1) should be published without delay.
"(2) Where the Minister publishes a notice in the Gazette under sub-section
(1)-
(a) in a case where the notice is published before the Minister takes any
action under sub-section 65J (1) in relation to goods of a particular
kind-section 65J does not apply in relation to the action that the
Minister may take under sub-section 65C (5) or 65F(1) in relation to
goods of that kind; or
(b) in any other case-any action taken by the Minister under sub-section
65J (1) in relation to goods of a particular kind ceases to have
effect and, if a conference had, under section 65J, been arranged or
such a conference had commenced or been completed without the
Commission making a recommendation under section 65K, the Minister may
publish the notice under sub-section 65C (5) or 65F (1) without regard
to the action taken under sub-section 65J (1).
Conference after goods banned "65M. (1) Where-
(a) a notice has been published under sub-section 65C (5) in relation to
goods of a particular kind; and
(b) the Minister publishes a notice under section 65L in relation to goods
of that kind, the Minister shall, by notice in writing published in
the Gazette, invite any person (in this section referred to as a
'supplier') who supplied or proposes to supply goods of that kind to
notify the Commission within the period (in this section referred to
as the 'relevant period') of 10 days commencing on the day specified
in the last-mentioned notice, being not earlier than the day on which
that notice is published in the Gazette, to notify the Commission
whether the supplier wishes the Commission to hold a conference in
relation to the notice referred to in paragraph (a).
"(2) If a supplier notifies the Commission in writing within the relevant
period, or within such longer period as the Commission allows, that the
supplier wishes the Commission to hold a conference in relation to the notice
published under sub-section 65C (5), the Commission shall appoint a day (being
not later than 14 days after the end of that period), time and place for the
holding of the conference and give notice of the day, time and place so
appointed to the Minister and to each supplier who so notified the Commission.
"(3) Sub-sections 65J (5), (6) and (7) apply in relation to a conference held
under this section.
Recommendation after conclusion of conference "65N. As soon as is
practicable after the conclusion of a conference in relation to a notice that
has been published under sub-section 65C (5), the Commission shall-
(a) by notice in writing given to the Minister, recommend that the notice
under sub-section 65C (5)-
(i) remain in force;
(ii) be varied; or
(iii) be revoked; and
(b) cause a copy of the notice in writing given to the Minister to be
given to each supplier who was present or represented at the
conference.
Minister to have regard to recommendation of Commission "65P. Where the
Commission, under section 65K or 65N, makes a recommendation to the Minister
in relation to the proposed publication of a notice under sub-section 65C (5)
or (7) or 65F (1) or in relation to a notice that has been published under
sub-section 65C (5)-
(a) the Minister shall have regard to the recommendation; and
(b) where the Minister decides to act otherwise than in accordance with
the recommendation, the Minister shall, by notice in writing published
in the Gazette, set out the reasons for the Minister's decision.
Power to obtain information, documents and evidence "65Q. (1) Where the
Minister or an officer authorised by the Minister for the purposes of this
section (in this section referred to as an 'authorised officer') has reason to
believe that a corporation which, in trade or commerce, supplies goods of a
particular kind which are intended to be used or are of a kind likely to be
used by a consumer and which will or may cause injury to any person is capable
of furnishing information, producing documents or giving evidence relating to
goods of that kind, the Minister or the authorised officer may, by notice in
writing served on the corporation, require the corporation-
(a) to furnish to the Minister, by writing signed by a competent officer
of the corporation, in the manner, and within such reasonable time, as
are specified in the notice, any such information;
(b) to produce to the Minister, or to the authorised officer, in
accordance with such reasonable requirements as are specified in the
notice, any such documents; or
(c) to cause a competent officer of the corporation to appear before the
Minister or the authorised officer at such reasonable time and place
as are specified in the notice to give any such evidence, either
orally or in writing, and produce any such documents.
"(2) Where an authorised officer has reason to believe that goods of a
particular kind which are intended to be used or are of a kind likely to be
used by a consumer will or may cause injury to a person, an authorised officer
may, for the purposes of ascertaining whether goods of that kind will or may
cause injury to any person, enter any premises in or from which the authorised
officer has reason to believe a corporation supplies goods of that kind in
trade or commerce and-
(a) inspect goods of that kind;
(b) take samples of goods of that kind;
(c) inspect any documents relating to goods of that kind and make copies
of, or take extracts from, those documents; or
(d) inspect equipment used in the manufacturing, processing or storage of
goods of that kind.
"(3) The powers of an authorised officer under sub-section (2) shall not be
exercised except-
(a) pursuant to a warrant issued under sub-section (5); or
(b) in circumstances where the exercise of those powers is required
without delay in order to protect life or public safety.
"(4) An authorised officer may apply to a person who is a judge of the Court
or of the Supreme Court of a State or territory for the issue under
sub-section (5) of a warrant to exercise the powers of an authorised officer
under sub-section (2) in relation to premises.
"(5) Where an application under sub-section (4) is made to a person who is a
judge of such a court, the person may issue a warrant authorising an
authorised officer named in the warrant, with such assistance as the officer
thinks necessary and if necessary by force, to enter the premises specified in
the warrant and to exercise the powers of an authorised officer under
sub-section (2) in relation to those premises.
"(6) A person who is a judge of such a court shall not issue a warrant under
sub-section (5) unless-
(a) an affidavit has been furnished to the person setting out the grounds
on which the issue of the warrant is being sought;
(b) the applicant or some other person has given to the first-mentioned
person such further information (if any) as the first-mentioned person
requires concerning the grounds on which the issue of the warrant is
being sought; and
(c) the first-mentioned person is satisfied that there are reasonable
grounds for issuing the warrant.
"(7) A warrant issued under sub-section (5) shall-
(a) specify the purpose for which the warrant is issued;
(b) state whether entry is authorised to be made at any time of the day or
night or during specified hours of the day or night;
(c) include a description of the kind of goods authorised to be inspected
or sampled; and
(d) specify a day, not being later than 7 days after the day on which the
warrant is issued, at the end of which the warrant ceases to have
effect.
"(8) Where an authorised officer takes samples under paragraph (2) (b), the
officer shall pay a reasonable price for the goods sampled.
"(9) A person who-
(a) refuses or fails to comply with a notice under this section to the
extent that the person is capable of complying with it; or
(b) in purported compliance with such a notice, furnishes information or
gives evidence that, to the knowledge of the person, is false or
misleading in a material particular, is guilty of an offence
punishable on conviction-
(c) in the case of a person not being a body corporate-by a fine not
exceeding $2,000 or imprisonment for a period not exceeding 12 months;
or
(d) in the case of a person being a body corporate-by a fine not exceeding
$10,000.
"(10) A person who refuses or fails to provide an authorised officer acting in
accordance with sub-section (2) with all reasonable facilities and assistance
for the effective exercise of the authorised officer's powers under that
sub-section is guilty of an offence punishable on conviction-
(a) in the case of a person not being a body corporate-by a fine not
exceeding $2,000 or imprisonment for a period not exceeding 12 months;
or
(b) in the case of a person being a body corporate-by a fine not exceeding
$10,000.
"(11) Any information furnished or evidence given by a person under this
section, any document produced by a person under this section, and any
information, evidence or document obtained under this section, is not
admissible in evidence against the person-
(a) in any proceedings instituted by the person; or
(b) in any other proceedings, other than proceedings against the person
for a contravention of a provision of this section.
Notification of voluntary recall "65R. (1) Where a corporation voluntarily
takes action to recall goods because the goods will or may cause injury to any
person, the corporation shall, within 2 days after taking that action, give a
notice in writing to the Minister-
(a) stating that the goods are subject to recall; and
(b) setting out the nature of the defect in, or dangerous characteristic
of, the goods.
"(2) A person who contravenes sub-section (1) is guilty of an offence
punishable on conviction-
(a) in the case of a person not being a body corporate-by a fine not
exceeding $2,000 or imprisonment for a period not exceeding 12 months;
or
(b) in the case of a person being a body corporate-by a fine not exceeding
$10,000. Copies of certain notices to be given to suppliers or
published in certain
newspapers "65S. (1) Where the Minister publishes a notice in writing in the
Gazette under sub-section 65B (1), 65J (1), 65L (1) or 65M (1), the Minister
shall, within 2 days after the publication of that notice in the Gazette, or,
if it is not practicable to do so within that period, as soon as practicable
after the end of that period, either-
(a) cause a copy of the notice to be given to each person who, to the
knowledge of the Minister, supplies goods of the kind to which the
notice relates; or
(b) cause a copy of the notice to be published in a newspaper circulating
in each part of Australia where goods of the kind to which the notice
relates are, to the knowledge of the Minister, supplied.
"(2) Any failure to comply with sub-section (1) in relation to a notice does
not invalidate the notice.
Certain action not to affect insurance contracts "65T. The liability of an
insurer under a contract of insurance with a corporation, being a contract
relating to the recall of goods supplied or proposed to be supplied by the
corporation or to the liability of the corporation with respect to possible
defects in goods supplied or proposed to be supplied by the corporation, shall
not be affected by reason only that the corporation gives to the Minister, to
the Commission, to an officer of the Australian Public Service or to an
officer of an authority of the Commonwealth information relating to any goods
supplied or proposed to be supplied by the corporation.
Cessation of Division in respect of foods and drinks "65U. At the expiration
of 2 years after the day on which this Division comes into operation, this
Division shall cease to have effect in respect of goods which are foods and
drinks intended for human consumption.".
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