Reforms are needed to close gaps in Australia’s product safety framework to prevent unsafe goods from reaching and harming Australian consumers, with online marketplaces a particular concern, the ACCC says.
The ACCC today responded to a designated complaint by consumer organisation CHOICE, which raised concerns that the growth in online marketplaces and online stores has outpaced Australia’s product safety framework.
In its response, the ACCC agrees that the existing Australian Consumer Law has limitations regarding online marketplaces, which is leading to harm to consumers including children.
The Federal Government has announced that Treasury will lead work to strengthen the product safety framework, including by improving mandatory injury reporting, strengthening penalties, and ensuring online marketplaces are subject to mandatory obligations.
“Australian consumers should be able to trust that products they purchase are safe, including when they buy goods online. We currently face challenges where sellers are based overseas or the online marketplace is not the direct supplier, making it difficult to prevent unsafe products sold through online marketplaces from reaching consumers,” ACCC Commissioner Luke Woodward said.
“We believe that many of the issues raised in the designated complaint are best addressed through regulatory reforms, including through clear obligations on online marketplaces.”
“We also support exploring options for new general safety protections relating to the safety of all consumer goods to further strengthen the product safety framework,” Mr Woodward said.
In July 2026, Consumer Affairs ministers identified holistic review of the product safety framework and laws, including general safety protections, as a priority area for reform. These reforms can support earlier intervention and give regulators effective tools to hold relevant market participants accountable.
“We strongly support the review and will continue to engage with online marketplaces while we support and participate in the law reform process underway by Treasury,” Mr Woodward said.
“While we agree there are gaps in current product safety laws, we will continue to use our full suite of compliance and enforcement tools to act against suppliers of unsafe goods, including Federal Court enforcement action where appropriate.”
The ACCC has continued to take action against a range of unsafe products, including in relation to non-compliant button battery products. Button batteries pose a significant risk to young children if swallowed or inserted. Three children have died in button battery incidents in Australia.
In August 2026, the Federal Court dismissed an appeal by Australian based retailer Fewstone Pty Ltd, trading as City Beach, upholding an earlier $14 million penalty for selling non-compliant button battery products, in proceedings brought by the ACCC. These products were available in-store and online.
In June 2026, the ACCC announced it is investigating banned and potentially deadly toys and games containing small high-powered magnets being sold to consumers online. The ACCC sent Amazon, eBay, Kogan, and Fruugo take down requests for the affected listings and the marketplaces committed to additional measures to prevent sellers relisting the same or similar products.
In May 2026 the ACCC commenced Federal Court proceedings against Amazon Commercial Services Pty Ltd (Amazon AU) alleging ‘Unicorn Toddler’ backpacks in its possession or control for sale on its online marketplace failed to comply with mandatory button battery warning requirements.
Also in May 2026, the Australian Government announced a permanent ban on baby bottle self-feeding devices. This followed a Safety Warning Notice issued after an ACCC recommendation to the Minister, and a subsequent ACCC investigation into the safety of these products. Many of the products were available to consumers online.
In 2020, the ACCC introduced the voluntary Product Safety Pledge for online marketplaces. Signatories include Amazon Australia, eBay Australia, AliExpress, Temu, Gumtree and Fruugo, who have committed to increased monitoring for unsafe products and regularly check for and remove unsafe products listings. The ACCC strengthened the Australian Product Safety Pledge this year, and will continue to work with online marketplaces to monitor commitments and increase the number of signatories.
CHOICE designated complaint
On 3 June 2026, the Australian Consumers’ Association CHOICE submitted a designated complaint to the ACCC raising concerns that unsafe, banned, prohibited and dangerous goods are reaching Australian consumers through online marketplaces, at scale.
It submitted that the current product safety regime contains gaps, in particular in relation to online marketplaces which act as intermediaries between sellers and buyers.
The complaint also noted that Australia does not have a general law that prevents the sale of unsafe products.
The complaint provided a range of examples of products that allegedly breached safety standards, or were allegedly banned, prohibited or unsafe, which were being sold on online marketplaces. The ACCC contacted the online marketplaces named in the complaint to bring the complaint to their attention. The ACCC does not propose to commence an investigation in relation to the specific examples raised. We consider reforms are key to addressing the issues raised in the complaint.
We will also continue to consider and investigate matters, including as part of the ACCC’s compliance and enforcement priority focused on unsafe consumer goods in digital markets.
The ACCC’s response to the designated complaint was published today.
Background
The designated complaints framework in the Competition and Consumer Act came into effect on 1 May 2024.
Under the law, three bodies can be designated by the Minister as designated complainants which can make one designated complaint within a 12-month period. Currently one of these designated bodies is CHOICE.
Designated complaints must meet certain criteria, and the ACCC is required to assess and publicly respond to the designated complaint within 90 days.
Note
Product safety regulation for general consumer products is a shared responsibility between the ACCC and the states and territories. The ACCC works closely with the state and territory regulators, as well as overseas regulators.
Certain government agencies monitor and regulate the safety of other specific types of products.
The product safety regulatory system has a combination of measures that support product safety outcomes. These include:
- voluntary actions by suppliers, including recalls which are published on the ACCC Product Safety website.
- restrictions on selling unsafe goods subject to mandatory standards and bans
- information and education that supports consumers to choose and use safe products
- product liability provisions allowing consumers to seek compensation from a manufacturer which has supplied a product with safety defects, if that product has caused loss or damage.
If a supplier finds that a product they supply is unsafe, we expect the supplier to follow our guidelines and recall the product voluntarily and remove it from the market. A supplier must tell the ACCC of the recall within two days of taking recall action.
If a supplier becomes aware of a death or serious injury/illness caused by a product they supply, the supplier must make a mandatory report through the ACCC Product Safety website.
Consumers can report products they consider to be unsafe to the ACCC through the ACCC Product Safety website.
More information about the current product safety system is available on the Product Safety website.
