ACCC releases product safety guide for online businesses
The Australian Competition and Consumer Commission has released a new publication, A guide for business: Consumer product safety online, that outlines best practice tips for online sellers and marketplaces.
“Australian consumers are increasingly looking to online stores to purchase consumer products but the online environment creates some unique product safety challenges and requirements that online suppliers need to be aware of,” ACCC Deputy Chair Dr Michael Schaper said.
For example, while a consumer can quickly and easily check the mandatory ingredients list of a cosmetic product while in-store, they are unable to do this online unless the list is clearly displayed with the product information.
“The ACCC is concerned that some online sellers, particularly those based overseas, may not be aware that all businesses supplying to Australian consumers have the same obligations under the Australian Consumer Law (ACL).”
Businesses breach the ACL if they sell banned products, do not meet all requirements of mandatory product safety standards or fail in their obligations related to product liability, consumer guarantees and misleading and deceptive conduct.
“Mandatory standards and bans are critical in preventing product-related deaths, injuries and illnesses. The ACCC regularly checks for non-compliant products being sold to Australian consumers, including via online stores.”
For example in 2013, ACCC surveillance identified two online businesses supplying banned small, high powered magnets to Australian consumers. Following negotiations with the ACCC, these suppliers stopped selling the magnets to Australians and conducted national product recalls.
“Product recalls can be expensive for a business but the cost of a recall is not the only potential financial consequence to online businesses who supply unsafe products. Penalties can include infringement notices and the ACCC can seek court-imposed penalties of up to $1.1 million for serious breaches,” Dr Schaper said.
Compliance tips for online businesses include:
- clearly displaying warnings and product labelling
- using good quality product images
- providing clear product descriptions, including
- recommended usage
- age-grading for children’s products
- checking the requirements of Australian safety standards and bans prior to listing a product as available for sale.
“Businesses must remember that the Australian Consumer Law applies regardless of whether products are sold in a ‘bricks and mortar’ shop, in an online store or via an online marketplace, and regardless of where the seller is based, I encourage all online suppliers to download a copy of the free report,” Dr Schaper said
The report is available on the Product Safety Australia website at www.productsafety.gov.au/consumersonline.
Businesses can find further information on product safety at www.productsafety.gov.au.