Improving Consumer Product Safety Regulation

A new national approach is needed to improve Australia’s consumer product safety system, according to a report released by the Productivity Commission: Review of the Australian Consumer Product Safety System.

Commissioner Robert Fitzgerald said: ‘The current consumer product safety system is delivering a reasonable level of product safety. But there are significant regulatory inconsistencies between governments that reduce the efficiency and effectiveness of the system. These should be addressed.’

The adoption of a single national law and regulator, replacing the States and Territories authority, is recommended by the Commission as a key reform to create a more consistent and responsive consumer product protection system.

‘Given the Trade Practices Act and the Australian Competition and Consumer Commission already cover most consumer product suppliers, it is both logical and appropriate that they be adopted as the single law and regulator’, said Mr Fitzgerald.

‘If this cannot be achieved, there at least should be harmonisation of consumer product safety laws and enforcement practices across Australia. This should include an agreement that permanent product bans and mandatory standards should only be applied on a national basis’, he said.

The Commission has also called for the responsiveness of the system to be improved by:

• introducing a new requirement for suppliers to notify the regulator of products associated with serious injury or death;
• developing a nationally coordinated product hazard identification system; and
• improving the targeting and timeliness of standards-making processes.

To address information gaps, the Commission has endorsed a number of initiatives including:

• a national internet based one-stop shop for business and consumer information; and
• a one-off base line research study into the incidence and costs of product-related accidents, and an analysis of their causes.