Product safety, standards and banned products

When you dropship, you may never see the products your customers receive. But in Australia, that doesn't mean product safety is someone else's problem. If you supply consumer goods to Australian consumers, the product safety provisions of the Australian Consumer Law (ACL) apply to you.

This matters because many popular dropshipping categories, such as toys, baby products, electronics, cosmetics and novelty gadgets, are exactly the areas where mandatory standards and bans apply. This guide explains how the system works and how to check your products. It is general information based on Product Safety Australia, run by the ACCC.

How product safety law works

The ACL gives the government several tools to keep consumers safe:

• Mandatory safety standards set requirements for particular types of products, such as design, testing, performance, labelling or warnings.
• Mandatory information standards require certain information to be provided, such as cosmetics ingredient labelling.
• Bans prohibit the supply of particular goods, either temporarily (interim bans) or permanently.
• Recalls remove unsafe products from the market, either voluntarily or because they are required.
• Mandatory reporting requires suppliers to tell the ACCC about serious incidents.

It is illegal to supply goods that don't comply with a mandatory standard or that are subject to a ban. Penalties can be substantial, and the ACCC monitors online marketplaces and stores.

Categories that need extra care

Mandatory standards and bans cover a wide range of goods. Areas that commonly affect dropshippers include:

• Toys and children's products, including toys for young children with small parts, aquatic toys and children's nightwear.
• Nursery products, such as cots, baby walkers, prams and strollers, and some infant products.
• Products with button or coin batteries, from remote controls to novelty items.
• Electrical goods, which are also regulated by state and territory electrical safety regulators.
• Cosmetics, which must follow ingredient labelling rules.
• Bicycle helmets and some sporting goods.
• Certain magnets, where small, powerful magnets pose a serious swallowing hazard.

This list is not complete. Check Product Safety Australia's current list of mandatory standards and bans for every product you plan to sell.

Button batteries

Button and coin batteries can cause severe injuries if swallowed, particularly to young children. Mandatory standards that took effect on 22 June 2022 require, among other things:

• secure battery compartments on consumer goods that contain button or coin batteries;
• compliance testing of those goods;
• warnings on products and packaging;
• child-resistant packaging for the batteries themselves.

Many cheap gadgets sold online contain button batteries. Ask your supplier for evidence of compliance, and if they can't provide it, don't sell the product.

Electrical products

Electrical goods face extra rules. Under the Electrical Equipment Safety System (EESS), administered by state and territory regulators, in-scope electrical equipment must meet safety requirements, and responsible suppliers may need to register on a national database. Higher-risk equipment requires certification before it can be sold.

Look for the Regulatory Compliance Mark (RCM) and ask suppliers for certification details. Uncertified chargers, power boards and heaters are a common source of risk.

Checking a product step by step

1. Identify the product type and its intended users, especially if it is designed for children.
2. Search Product Safety Australia for mandatory standards, information standards and bans.
3. Check recalls for similar products.
4. Ask the supplier for compliance documents, test reports and labelling details.
5. Order a sample and check warnings, labels, battery compartments and build quality.
6. Keep records of what you checked and when.
7. Re-check regularly, because standards and bans change.

Mandatory reporting

If you become aware that a consumer good you supplied has caused or may have caused someone's death, serious injury or illness, you must report it to the ACCC within two days. This applies even if you are not sure the product caused the harm, and even if the injury was due to misuse.

You report through the Product Safety Australia website. Keep records of customer complaints so you can identify serious incidents quickly.

Recalls

If a product you sold is recalled, you need to act quickly:

• stop selling it immediately;
• contact the customers who bought it, using your order records;
• follow the recall instructions, such as returns or refunds;
• work with your supplier on replacements or refunds.

If you initiate a voluntary recall, you must notify the responsible Commonwealth minister within two days. Product Safety Australia has guidance on running recalls.

Product descriptions and safety claims

Safety claims in your listings must be accurate. Don't describe a product as "certified", "safe for babies" or "meets Australian standards" unless you have evidence. False safety claims can mislead consumers under the ACL as well as create safety risks.

The supplier's role

Your supplier may also have obligations, especially if it imports or manufactures the goods. But relying on a supplier's word isn't enough. Build product safety into your supplier vetting, as described in our supplier guide, and include compliance and recall responsibilities in your agreement.

Common product safety mistakes

• Assuming overseas approval is enough. A product sold legally in another country may not meet Australian mandatory standards.
• Trusting a listing photo. Compliance marks in product photos can be copied. Ask for the actual test reports and check they match the product.
• Forgetting accessories. Chargers, batteries and power supplies that come with a product may have their own requirements.
• Ignoring age grading. If a product looks like it's designed for young children, safety rules for children's products may apply, even if your listing says "not for children".
• Not keeping records. If a regulator or customer asks, you need to show what you checked and when.

Listing products responsibly

Your product page is part of your safety system. Include the warnings, age recommendations and instructions that come with the product, show any required labelling information, and never remove safety information to make a listing look cleaner. If customers report a safety issue, take the listing down while you investigate.

Key points

The ACL's product safety rules apply to dropshippers who supply consumer goods in Australia. Check Product Safety Australia for mandatory standards, information standards, bans and recalls before listing a product, especially for children's goods, button batteries, electrical items and cosmetics. Get compliance evidence from suppliers, inspect samples, avoid unsupported safety claims, and report deaths, serious injuries or illnesses to the ACCC within two days.

Related guides

Read choosing a dropship supplier, overseas suppliers and imports and refunds and consumer guarantees.