• Are you aware if mandatory standards apply to your product and what they are?
  • Are you aware of your obligations to report serious injuries, illnesses and deaths to us?
  • Do you know how to find out if a product is banned or recalled?

On this page

If your small business is selling products or product-related services, you should be aware of the basic rights consumers have when buying a good or service.

These basic rights are called consumer guarantees.

One of these consumer guarantees is that products are of .

Every business in the supply chain is responsible for supplying safe products

It is your business' responsibility to make sure the products you supply are safe. Anyone in the business of supplying a product must comply with product safety laws.

This includes:

  • manufacturers
  • importers
  • distributors
  • retailers
  • hirers.

Understanding product safety rules

Product safety laws help make sure products are of acceptable quality and safe. Under the law, mandatory safety standards are applied to certain products to minimise safety risks to consumers. Products identified with safety risks can also be banned or recalled.

Product liability laws apply to manufacturers of all products, not only those subject to a mandatory standard. Manufacturers can be found liable and may be required to pay compensation, if their product has a safety defect and a person suffers injuries because of the defect. A safety defect means it doesn鈥檛 meet the level of safety the public is entitled to expect. It doesn't matter whether the manufacturer was aware of the defect.

Case study

A manufacturer of a garage roller was found liable for injuries sustained by a consumer when the door came off its mountings and fell on her.

This occurred because the installation instructions provided were inadequate. (Skerbic v McCormack & Ors)

Determining when a product is unsafe

Products you supply should be of an acceptable quality, which includes being safe. Products can be unsafe even though they are not defective. Several factors are taken into consideration when determining whether a product is safe. These include the expected uses of the product, age of the product, price and features of the product, and instructions and warnings accompanying the product.

Reduce your risk of breaking the law

  • Check if the products you supply have mandatory standards you are required to follow by law and make sure they comply.
  • Develop a compliance program if your product does have mandatory standards.
  • Check if your products are banned, especially if you import or sell products from overseas.
  • Make sure you understand the product recall process, and have a recall plan in place too.
  • Remember if you鈥檙e an online business or sell second-hand products you still must follow product safety laws.
  • Know the mandatory reporting requirements if your product causes (or is thought to have caused) a serious injury, illness or death.

Mandatory standards and how to comply

detail the safety or information features that are required for certain products to be legally supplied in the Australian market. These features can relate to performance, composition, design, construction, packaging, labelling and more.

People often think that all products sold in Australia must meet safety standards.

This isn鈥檛 correct. Mandatory standards and are only made when evidence shows a high risk of serious injury, serious illness or death related to a product.

All products that have mandatory standards must comply before being supplied in Australia.

Check our .

How to comply with mandatory standards

If the product you supply does have a mandatory standard you need to read it and make sure you understand and comply with the requirements.

There are actions your business can take to help you comply with product safety mandatory standards. Find out how to:

  • .

Example

Button and coin batteries are flat, round single cell batteries.

There are 4 mandatory safety and information standards for button and coin batteries, and products containing them. The standards cover how these batteries, products and their packaging must be designed and tested. They also cover the warning and safety information that must be provided with button and coin batteries and products.

You are considered a supplier if you manufacture, import, distribute or retail button and coin batteries or consumer goods containing button and coin batteries within Australia or for the Australian market.

If you supply consumer products in Australia at any stage in the supply chain, you are legally responsible for product safety.

Product bans and how to comply

can be placed on products or product-related services if there鈥檚 a risk of serious injury, serious illness or death.

There are 2 types of bans: interim or permanent. An interim ban lasts for 60 days and can be extended by an additional 60 days. It can be ordered at the state/territory level or nationally by the Commonwealth Minister. A permanent ban can only be ordered by the Commonwealth Minister.

How to comply with bans

If any of your products or product-related services are banned, you must not sell or supply them. This includes if you are importing or selling products from overseas. Make sure you .

It is also against the law to manufacture, possess or have control of a banned product. If you鈥檙e aware of any banned or unsafe products being supplied in Australia, you can .

Example

There is a permanent ban on separate or loose small high-powered magnets with a flux index greater than 50 (kG)2 mm2 that are used in certain toys or jewellery.

If children swallow multiple magnets, they can stick together in the intestine or digestive tissue leading to serious internal injuries or death. They are also a choking risk.

    If you become aware that you are supplying a banned or unsafe product, you must:

    1. immediately stop supplying the product
    2. and let consumers know
    3. within 2 days of taking recall action.

    Product recalls and how to comply

    If a product is dangerous, unsafe or harms people, suppliers are expected to undertake a voluntary recall. 

    A responsible Minister can also initiate a compulsory recall. If the Minister initiates a compulsory recall, it is an offence for businesses to sell the product that is subject to the recall (including any existing stock).

    How to comply with recalls

    If you become aware of an unsafe product you need to act. Your business is responsible for quickly removing the risk to public safety when a product is unsafe. You will need to remove the product from sale, contact consumers, and publicly offer to repair, replace or refund the product.

    You must tell us about your recall for a product you have supplied that will or may impact people鈥檚 safety within 2 days of taking a recall action.

    We provide . These can help you:

    • determine if a recall is needed
    • how to initiate a voluntary recall
    • prepare and plan for the recall.

    Case study

    A retailer was ordered to pay more than $3 million in penalties for failing to remove several house brand products from sale after becoming aware they had caused serious injuries.

    The Court found that by not recalling the products and removing them from sale, the retailer had misled consumers as to the suitability of the goods. See the .

    Online and second-hand products

    Make sure you online including new and second-hand products or through a marketplace store. You are still required to follow Australian product safety laws as an online small business or when selling second-hand products. This includes checking the product complies with product safety requirements.

    Example

    A small online business sells second-hand toys. Some of the toys contain button batteries.

    Button batteries can be lethal for young children if accessed and swallowed.

    The toys sold by the small business are not supplied with any warnings about the button batteries. Therefore, the toys may not comply with the .

    The small business may be in breach of the Australian Consumer Law and may face fines or penalties. They must stop supplying these second-hand products without the required warnings and make sure that the products they supply meet any required mandatory standard for that product.

    Mandatory reporting of serious injuries or death

    If your business becomes aware of any product-related death, serious injury or serious illness involving a product it has supplied, you must . A mandatory report must be made within 2 days of the supplier becoming aware of a reportable incident, even if the business is not certain that their product caused the incident. A mandatory report of an incident is not an admission of liability by your business.

    Example

    The supplier of a range of mobility scooters finds out that a consumer has suffered an arm fracture and required stitches after their scooter lost its front wheel and tipped over. The supplier is concerned that a batch of its products has defective bolts connecting the front wheels to the body.

    These injuries were caused (or may have been caused) using the scooter and must be reported to the 糖心原创 within 2 days of the company becoming aware of the incident.

    When you don鈥檛 comply

    If you fail to comply with the mandatory standards, bans, product recall or incident reporting requirements you may face enforcement action that attracts under the Australian Consumer Law.

    Learn more about .