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# Australia Mandatory Product Safety Reporting: ACCC Obligations for Suppliers

Australia's mandatory product safety reporting regime gives suppliers just 2 calendar days to notify the ACCC after becoming aware of a serious injury or death associated with their product — no exceptions for weekends, incomplete information, or ongoing investigations. This guide covers who the obligation applies to, what triggers a report, how voluntary and mandatory recalls differ, and the penalties that apply when suppliers miss the window.

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At a glance

Authority

ACCC (Australian Competition and Consumer Commission)

Governing Law

Australian Consumer Law, Schedule 2

Reporting Deadline

2 calendar days from awareness

Corporate Penalty

Up to AUD $50,000 per breach

Portal

productsafety.gov.au

## Key product safety reporting concepts for suppliers

### Australian Consumer Law — Schedule 2 Mandatory Reporting

The mandatory product safety reporting obligation sits in Schedule 2 of the Competition and Consumer Act 2010, commonly referred to as the Australian Consumer Law (ACL). The obligation applies to any supplier — manufacturer, importer, wholesaler, or retailer — who becomes aware that a consumer good they supply has been associated with a serious injury or death. The ACCC administers product safety under the ACL, supported by state and territory fair trading agencies. In 2023 alone, the ACCC received more than 600 mandatory reports — a figure that illustrates both the breadth of the obligation and the enforcement attention it attracts.

### The 2-Calendar-Day Reporting Rule

The ACL requires a mandatory report to be submitted within 2 calendar days of a supplier becoming aware that their product has been associated with a serious injury, illness, or death. There are no exceptions for weekends, public holidays, or incomplete information — the clock starts when any responsible officer or employee gains awareness, not when the information reaches head office. The report can be lodged through productsafety.gov.au, and a preliminary report with known information is acceptable — it can be supplemented as the investigation progresses. Suppliers who discover they should have reported but didn't must submit the report immediately and may still face penalties for the original delay.

### What Triggers a Mandatory Report

A report is required when a supplier becomes aware of a serious injury (requiring medical treatment beyond first aid), serious illness, or death that is or may be associated with the use or foreseeable misuse of a consumer good they supply. The association does not need to be confirmed — a credible causal connection is sufficient to trigger the obligation. This includes incidents reported by consumers, retailers, overseas regulators, or identified through post-market surveillance. Products subject to an existing safety standard or ban under ACL ss 104–106 are subject to heightened scrutiny, and incidents involving those products are more likely to trigger enforcement action.

### Corrective Action Notices (CANs) and Compulsory Recalls

Where the ACCC determines that a product poses a safety risk, it can issue a Corrective Action Notice (CAN) requiring the supplier to take specific actions — such as issuing a safety warning, repairing or replacing affected units, or conducting a recall. CANs are a mandatory compliance instrument, not a negotiation. If a supplier fails to comply, or if the risk is sufficiently serious, the ACCC can issue a compulsory recall notice requiring publication in a national newspaper and direct consumer notification. In practice, the ACCC strongly prefers negotiated voluntary recalls where suppliers are cooperative — but the compulsory recall power is exercised when suppliers delay or minimise the risk.

### Voluntary vs Mandatory Recalls — Key Differences

A voluntary recall is initiated by the supplier — either proactively or in negotiation with the ACCC — and gives the supplier control over the recall strategy, messaging, and timeline (subject to ACCC oversight). A mandatory recall is ordered by the Minister for Competition, Consumer Affairs and Treasury and published via the ACCC, removing supplier control and imposing statutory obligations. Voluntary recalls, executed promptly and transparently, are viewed far more favourably by the ACCC and typically result in lower reputational damage. Suppliers who delay a voluntary recall while hoping the issue resolves itself are the most likely candidates for mandatory recall action.

### Penalties for Failure to Report

Corporations that fail to lodge a mandatory product safety report within the 2-calendar-day window face civil penalties of up to AUD $50,000 per breach under the ACL. Each incident that should have been reported but wasn't is a separate contravention — multiple unreported incidents multiply the exposure. The ACCC's Product Safety Test Report database (PSTAR) also maintains records of product testing, which can be used in enforcement proceedings to demonstrate that a supplier had reason to know of a safety risk. Beyond financial penalties, failure to report can be raised in product liability litigation as evidence of negligence.

## Mandatory reporting process for suppliers

01

Establish an internal product incident tracking system before you need it. Designate a product safety officer, define what constitutes a reportable incident, and create a clear escalation path from customer service to the responsible decision-maker. The 2-day clock starts from the moment any employee becomes aware — not when the information reaches your legal team.

02

Train customer service, sales, and quality assurance teams on mandatory reporting triggers. Staff who handle consumer complaints and warranty claims are the first to hear about injuries. They need to understand that any report of a serious injury associated with a product must be escalated immediately, not resolved at the frontline and closed without upward notification.

03

Determine whether a consumer complaint or injury report meets the mandatory reporting threshold. The trigger is a serious injury, illness, or death that is or may be associated with the product — not a confirmed causal link. When in doubt, report. The ACCC does not penalise over-reporting, but it does penalise late or absent reporting. Engage your legal team within hours, not days, of receiving a potentially reportable incident.

04

Submit the mandatory report within 2 calendar days via productsafety.gov.au. Use the ACCC's online reporting form and include all known information — product details, incident description, consumer details (if available), and any corrective action already taken. A preliminary report is acceptable; follow up with a supplementary report as your investigation develops.

05

Assess whether a voluntary recall is appropriate. Once you have submitted the mandatory report, conduct a rapid internal risk assessment — scope of affected products, severity of risk, availability of a remedy, and estimated number of units in the market. If the risk is systemic rather than isolated, initiate contact with the ACCC's product safety team to discuss a voluntary recall strategy before the ACCC contacts you.

06

Engage with the ACCC on a corrective action plan if the ACCC reaches out following your report. The ACCC may request additional information, a risk assessment, or a proposed corrective action. Respond promptly and in full — delays in engaging with the ACCC after filing a mandatory report are themselves a red flag that can escalate regulatory scrutiny.

07

Document all actions taken in case of ACCC investigation or product liability proceedings. Maintain a chronological record of when you became aware of the incident, who was notified internally, what decisions were made and when, what corrective action was taken, and all communications with the ACCC. This documentation is your primary defence in any enforcement action or civil litigation.

## Frequently asked questions

### When is mandatory product safety reporting required in Australia?

Mandatory reporting is required under the Australian Consumer Law (Schedule 2 of the Competition and Consumer Act 2010) whenever a supplier becomes aware that a consumer good they supply has been associated with a serious injury, serious illness, or death. The association does not need to be established with certainty — if there is a credible possibility that the product caused or contributed to the harm, the reporting obligation is triggered. The report must be lodged within 2 calendar days via productsafety.gov.au.

### What is the 2-day reporting rule?

The 2-day rule requires that a mandatory product safety report be submitted within 2 calendar days of the supplier (or any of its officers or employees) becoming aware of the serious injury or death associated with their product. There are no extensions for weekends, public holidays, or incomplete information. A preliminary report with available information is acceptable and can be followed by a supplementary report. Failure to meet the 2-day deadline is itself a separate breach of the ACL, regardless of whether the underlying product safety risk is eventually resolved.

### What is the difference between a voluntary and mandatory product recall?

A voluntary recall is initiated by the supplier, either proactively or in consultation with the ACCC, and gives the supplier significant control over the process, messaging, and remedy strategy subject to ACCC oversight. A mandatory recall is ordered by the Commonwealth Minister under the ACL and removes supplier control — the supplier must comply with the terms of the recall notice, including publication requirements and direct consumer notification. Voluntary recalls executed promptly are strongly preferred by the ACCC and typically involve less regulatory and reputational damage. Compulsory recalls are generally reserved for situations where a supplier has delayed, minimised the risk, or refused to act.

### What penalties apply if I fail to report a product safety incident?

Corporations that fail to submit a mandatory product safety report within 2 calendar days face civil penalties of up to AUD $50,000 per breach. Each unreported incident is a separate contravention, so multiple failures can compound rapidly. Beyond ACL penalties, failure to report can be used as evidence of negligence in product liability proceedings brought by injured consumers. The ACCC's PSTAR database and product testing records can also be used to demonstrate that a supplier had prior reason to know of a safety risk, increasing exposure in both regulatory and civil proceedings.

**Disclaimer:** Educational resource only. Regulatory requirements change. Consult a qualified compliance specialist before making decisions.

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