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# ACCC Product Safety Enforcement for Electronics Suppliers

The ACCC enforces product safety under the Australian Consumer Law using a combination of mandatory standards, market surveillance testing, recall powers, and financial penalties. Electronics hardware companies must comply with applicable mandatory standards before supply, maintain post-market monitoring systems, and notify the ACCC within two days of initiating any voluntary safety recall — with substantial penalties for failing to meet these obligations.

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At a glance

Law

Australian Consumer Law (ACL)

Enforcer

ACCC

Recall notification

2 business days

Max penalty

$50M+ for corporations

## Product safety framework

### Australian Consumer Law (ACL) product safety framework

The Australian Consumer Law (Schedule 2 to the Competition and Consumer Act 2010) is the primary federal product safety legislation. It empowers the ACCC to make mandatory safety standards, impose interim and permanent bans, require compulsory recalls, and accept undertakings from suppliers. State and territory consumer protection agencies also enforce the ACL concurrently.

### Mandatory standards for electronics

The ACCC has made mandatory standards for a range of consumer electronics categories — including power boards, portable battery-powered devices, USB chargers, and button batteries. A mandatory standard specifies the safety requirements a product must meet before it can be supplied. Supplying a product that does not comply is a strict liability offence and can result in substantial financial penalties.

### Recall obligations: voluntary vs compulsory

Suppliers are required to notify the ACCC within two days of initiating a voluntary safety recall for a product that may cause injury. If the ACCC determines a voluntary recall is inadequate, it can issue a compulsory recall notice. Compulsory recall notices are published on the ACCC's Product Safety Australia website and impose specific supplier obligations around customer contact, remedy, and reporting.

### Penalty exposure and enforcement tools

Financial penalties for ACL product safety contraventions can be substantial — up to $50 million or more for corporations under recent penalty reforms. The ACCC also uses infringement notices for less serious breaches, accepts court-enforceable undertakings, and publishes product safety alerts that damage brand reputation even before formal enforcement action is taken.

## Managing a product safety issue

01

Before launch, identify all applicable mandatory standards for your product category on the ACCC Product Safety Australia website — compliance is a pre-market requirement, not something assessed post-sale.

02

Test the product against the applicable mandatory standard using an accredited laboratory (NATA-accredited or ILAC-accredited) and retain the test report as compliance evidence.

03

Implement a product safety incident monitoring process: collect field reports, retailer feedback, and customer complaints systematically so that safety issues are identified and escalated quickly.

04

If a safety issue is identified post-market, conduct a risk assessment to determine whether the defect creates a risk of injury — the ACL definition of a product safety recall trigger is broad and includes any risk that a reasonable supplier would act on.

05

If a voluntary recall is initiated, notify the ACCC within two business days via the Product Safety Australia recall notification portal — failure to notify on time is itself a breach of the ACL.

06

Manage the recall: contact retailers and distributors, communicate clearly with customers, and implement an effective remedy (refund, repair, or replacement depending on the nature of the defect).

07

Report recall progress to the ACCC as required — the ACCC monitors voluntary recall effectiveness and will escalate to compulsory recall if it determines the voluntary action is insufficient.

## Frequently asked questions

### What is the two-day notification rule?

Section 128 of the ACL requires that a supplier who initiates a recall of goods because of a safety defect must notify the responsible minister (in practice, the ACCC) no later than two days after the recall commences. The notification must describe the goods, the nature of the defect, and the action being taken. Late notification is itself a contravention of the ACL and can attract penalties.

### Are there mandatory standards for button batteries?

Yes — the ACCC implemented a mandatory standard for button batteries and products containing them, which came into force in 2023. The standard requires secure battery compartments, child-resistant packaging, and warning labelling. Electronics products containing button or coin batteries — remotes, wearables, medical devices, toys — must comply before sale in Australia.

### What triggers the ACCC's compulsory recall power?

The ACCC can issue a compulsory recall notice if it believes goods will or may cause injury to any person and no satisfactory voluntary action has been taken, or if a voluntary recall is inadequate. 'Inadequate' can mean insufficient reach, unclear consumer communication, or an inadequate remedy. The ACCC uses its compulsory powers when it is not satisfied a supplier is handling a safety issue effectively.

### Does the ACCC's product safety framework apply to B2B sales?

The ACL product safety provisions apply to goods 'supplied' in trade or commerce in Australia, which includes B2B supply chains — distributors and wholesalers selling to retailers, and manufacturers supplying to OEM customers. The 'consumer goods' mandatory standards are specifically targeted at goods ordinarily acquired for personal, domestic, or household use, so purely industrial equipment is typically outside their scope, but check each mandatory standard for its product scope definition.

**Disclaimer:** Educational resource only. Mandatory standards and recall obligations vary by product category. Consult a qualified product safety specialist or Australian regulatory lawyer before making compliance decisions.

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