Australian Retailers Remove Thousands of Unsafe Products, Regulators Demand Stricter Laws
Online retailers in Australia have removed nearly 3,000 unsafe products, but persistent concerns remain over hazardous items being re-listed and slow removal times by some businesses. Both the Australian Competition and Consumer Commission (ACCC) and consumer watchdog Choice are urgently advocating for stricter regulations and legislative reforms to tackle the pervasive product safety challenges within the country's online retail sector. The ACCC has also announced significant plans to intensify scrutiny on major online marketplaces in the coming years.
Lingering Concerns Over Online Product Safety
The Australian Competition and Consumer Commission (ACCC) reports that nearly 3,000 unsafe products have been successfully removed by online retailers in Australia. However, this progress is overshadowed by significant issues.
The ACCC's annual report on the Australian Product Safety Pledge revealed troubling patterns. Instances were noted where a business reportedly resumed selling unsafe products after initial removal. Furthermore, one platform was found to meet the required two-day timeframe for removing unsafe products in only 69 percent of cases.
Consumer watchdog Choice has described these findings as potentially indicative of "product safety washing" within the online retail sector.
Andy Kelly, Choice's campaign director, elaborated on this, defining "product safety washing" as platforms projecting high safety standards without implementing substantial, tangible measures to truly protect consumers. This perception is reinforced by a 2024 survey cited by Choice, which found that a majority of Australians mistakenly believe businesses are legally mandated to ensure product safety.
The Australian Product Safety Pledge: A Voluntary Approach
Established in 2020, The Australian Product Safety Pledge is a voluntary initiative by the ACCC designed to enhance product safety standards across online retail. Key current signatories include Amazon Australia, eBay Australia, and AliExpress.
Notably, Catch and myDeal reportedly left the scheme in 2025. Both Amazon Australia and eBay Australia spokespeople have affirmed their commitment to product safety, detailing their use of automated technology and human investigators to proactively identify and remove unsafe items. Alibaba, the parent company of AliExpress, opted not to provide a comment.
In the last financial year, participating marketplaces removed over 2,700 products following ACCC takedown notices.
Despite these removals, the ACCC has expressed concerns. A significant lack of oversight for platforms not signatory to the pledge, combined with breaches by existing signatories, has contributed to a worrying erosion of buyer trust in online shopping.
Demands for Stricter Regulation and Legislative Action
Both Choice and the ACCC are vocally advocating for comprehensive reform in Australian product safety laws. Since 2020, Choice has pushed for a ban on the sale of unsafe goods, aiming to align Australia with more proactive regulations found in regions like the European Union, Canada, and the United States.
Currently, Australian laws are primarily reactive, imposing fines on companies that breach safety standards; 18 companies have faced such penalties since 2016. Mr. Kelly from Choice urged online operators to take meaningful action on safety, cautioning that the ACCC pledge should not be used merely as a "marketing badge."
The ACCC is actively pursuing legislative reform to impose specific, binding obligations on online marketplaces concerning product safety. These proposed reforms could introduce substantial fines for platforms that fail to remove dangerous items within two days of notification, with a clear emphasis on online marketplaces.
ACCC chair Gina Cass-Gottlieb voiced significant concern over the escalating availability of unsafe products, particularly children's toys and baby products containing button batteries, across online platforms. Looking ahead, the ACCC's compliance and enforcement priorities for the 2026-27 financial year will intensify scrutiny on major online marketplaces, including Temu, Shein, Amazon, and eBay, with a keen focus on establishing robust compliance procedures.
High-Profile Incident Underscores Safety Gaps
Temu, a prominent online retailer in Australia, formally applied to join the Australian Product Safety Pledge in March 2024. This application came in the wake of a severe incident where an eight-year-old girl sustained burns from a hoodie purchased on its platform.
As of last month, both Temu and the ACCC confirmed that the application remains under review. Hannah Jacobs-Herd, the girl's mother, publicly expressed her view that Temu's commitment to join the pledge exemplifies "product safety washing."
Ms. Jacobs-Herd initiated a lawsuit against Temu, which has reportedly stalled as the platform deferred liability for the recalled hoodie to its Chinese supplier.
In response, Temu has since banned that specific seller from selling children's products on its platform. Shine Lawyers, the firm representing Ms. Jacobs-Herd, has reported unsuccessful attempts to contact the supplier directly, highlighting the complex challenges of seeking recourse across international supply chains.