Consumer product safety

report

Consumer product safety

Research report

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The current regulatory system plays a necessary and important role in identifying and removing unsafe products through recalls, bans and standards. Overall, the regulatory system in combination with other mechanisms — the market, the product liability regime, media scrutiny and consumer advocacy — deliver a reasonable level of product safety, as expected by Australian consumers.

Nevertheless there is considerable scope to make the regulation of consumer product safety more efficient, effective and responsive.

A strong case exists for national uniformity in the regulation of consumer product safety. Current differences create inefficiencies in a resource constrained environment, including duplication of effort and inconsistent approaches to similar risks and hazards. The preferred model is to have one national law, the Trade Practices Act, and a single regulator, the Australian Competition and Consumer Commission.

If this is not achievable, jurisdictions should harmonise core legislative provisions, including a changed requirement that permanent bans and mandatory standards should only be adopted on a national basis.

There is also merit in the following legal reforms:

  • including 'reasonably foreseeable use' in the definition of 'unsafe';
  • ensuring that services related to the supply, installation and maintenance of consumer products are covered by all jurisdictions; and
  • requiring suppliers to report products which are associated with serious injury or death.

The Commission also proposes a number of administrative reforms, including:

  • consistently making hazard identification and risk management more central to policy making, standard setting and enforcement;
  • improving the focus and timelines for the development of mandatory standards;
  • providing better regulatory information to consumers and businesses through a 'one-stop shop' internet portal; and
  • establishing a national clearinghouse for gathering information and analysis from existing sources to provide an improved hazard identification system.

Efforts to improve the safety of consumer products would also benefit from:

  • conducting a comprehensive baseline study of consumer product-related accidents; and
  • reviewing product recall guidelines.