The safety of consumer goods and product related services is dealt with in Pt 3.3 of the Australian Consumer Law (ACL) (which is Sch 2 to the Competition and Consumer Act 2010 (Cth)).

Consumer goods are defined in s 2(1) of the ACL as:

“goods that are intended to be used, or are of a kind likely to be used, for personal, domestic or household use or consumption, and includes any such goods that have become fixtures since the time they were supplied if:

• a recall notice for the goods has been issued; or

• a person has voluntarily taken action to recall the goods.”

Part 3.3 of the ACL covers:

• the making of and obligations in respect of safety standards for consumer goods and product related services (ss 104–108 );

• the placing of interim and permanent bans on consumer goods or product related services which will or may cause injury to a person, and the obligations when such bans are in place (ss 109–121 );

• compulsory and voluntary recalls of consumer goods (ss 122–128 );

• safety warning notices about consumer goods and product related services (ss 129–130 ); and

• mandatory reporting of consumer goods or product related services which have or may have caused death or serious injury or illness to any person: ss 131–32A ;

Part 3.4 of the ACL provides for the making of information standards for goods and services and the consequences of non-compliant supply of such goods: ss 134–137.

Part 3.5 of the ACL sets out the circumstances in which a manufacturer will be liable for loss and damage caused by a safety defect in goods:ss 138–149.

Important points to bear in mind when considering the application of these parts are:

• the goods and services covered by Pts 3.4 and 3.5 are not limited to consumer goods and services;

• Part 3.5 relies on the extended definition of manufacturer in s 7 of the ACL to include not only those who make goods but also those who:

• A number of the obligations, especially those dealing with recalls and mandatory reporting of product related death, injuries and illness, require compliance within very short time frames (as little as 2 days).

Safety standards for consumer goods and/or product related services are aimed at specifying requirements necessary to reduce the risk of injury to any person. They can be only be made by the relevant Commonwealth Minister (currently the Minister for Competition Policy and Consumer Affairs, who administers his portfolio through the Parliamentary Secretary to the Treasurer) and apply nationally. Examples are standards relating to baby dummies, bicycle helmets and elastic luggage straps.

Supply of goods and services in breach of a safety standard is prohibited and renders the supplier liable to a pecuniary penalty.

Details about safety standards can be found at the ACCC’s Product Safety website.

See What are safety standards?

Bans can be imposed on consumer goods and product related services where it appears to the responsible Minister that the goods or services, or a reasonable use or misuse of such goods or services, will or may cause injury to any person. Bans can be imposed on an interim basis by the Commonwealth Minister for Competition Policy and Consumer Affairs (in which case they apply nationally) or any responsible state or territory Minister (with application only in that state or territory).

Permanent bans can only be imposed by the Commonwealth Minister for Competition Policy and Consumer Affairs and apply nationally.

Failure to comply with a ban is an offence for which pecuniary penalties apply. Persons who suffer loss and damage as a result of non-compliance with a ban can recover damages.

Details about interim and permanent bans can be found at the ACCC’s Product Safety website.

See Interim and permanent bans on consumer related goods and services.

The ACL provides for two types of product recalls, being those which occur:

• compulsorily at the direction of the Commonwealth Minister for Competition Policy and Consumer Affairs or a state or territory Minister; or

• voluntarily by a supplier — which requires reporting of the same to the Commonwealth Minister for Competition Policy and Consumer Affairs.

Recalls are required where goods, or a reasonable use or misuse of goods, will or may cause injury to a person, or where the goods do not comply with a safety standard, or an interim or permanent ban is in place.

Details about recalls can be found at the ACCC’s website.

Suppliers of consumer goods or product related services who become aware (either themselves or through other persons) that those goods or services, or a reasonably foreseeable use or misuse of them, may have caused death or serious injury or illness to any person must provide a report to the Commonwealth Minister for Competition Policy and Consumer Affairs, giving details of :

• the goods and services;

• to the extent known, when they have been supplied, the circumstances in which the death, serious injury or illness occurred, the nature of the death, serious injury or illness and any action which the supplier has taken or intends to take.

The notices are confidential and do not amount to an admission of liability.

See Reporting obligations when consumer goods or product related services cause death or serious injury or illness.

Information standards are written notices about goods or services of a particular kind which are made by the Commonwealth Minister for Competition Policy and Consumer Affairs and which require suppliers of those goods or services to provide certain information about them.

Supply of goods and services in breach of an information standard is prohibited and renders the supplier liable to a pecuniary penalty.

Details about information standards can be found at the ACCC’s Product Safety website.

See What are information standards?

Manufacturers who supply goods which have a safety defect are liable for any loss or damage incurred by an individual who suffers injury as a result of the defect (other than loss which could be recovered under workers compensation legislation). This liability extends to other persons who suffer loss and damage because of the injury to another person caused by the safety defect, and to loss and damage where land, buildings or fixtures are involved: ss 138–141, ACL.

Limited defences apply to actions for loss and damage, including where the safety defect did not exist at the time the goods were supplied: s 142, ACL.

See When will a manufacturer will be liable for loss and damage caused by a safety defect in goods?