Consumers have the right to expect that the goods they purchase from a trader will be safe to use. As a business, you have a legal obligation to ensure that the goods you supply are free from defects which may cause injury to consumers.

The Office of Fair Trading plays an active role in educating businesses and consumers about product safety and has many publications available on safety and standards issues. It also conducts ongoing marketplace surveys to ensure that products continue to meet mandatory standards.

Fair Trading has and will continue to prosecute suppliers who ignore their responsibilities under the Fair Trading Act 1987. Penalties for supplying non-compliant products that are in breach of the Act range from $22,000 for individuals to $110,000 for corporations.

The Fair Trading Act also requires that certain goods must comply with safety requirements before they can be sold, and certain information must be supplied with that product when it is sold. You may also need to give further information to consumers on certain types of products such as clothing (for example – care instructions).

Check before you supply

It is a good idea to ask yourself the following questions and do your research to minimise the risk of supplying unsafe products and services to your customers.

• Have I got a copy of the ‘Summary of Laws’ document? 
  Available from the Safety and Standards Branch of the Office of Fair Trading, it contains lists of banned and regulated products in NSW. For more information on the Australian Standards mentioned in the ‘Summary of Laws’ document call 1300 654 646 or visit www.saiglobal.com/shop

• Have I got a copy of a recent pass test report or approval certificate for the gas appliance or declared electrical article from my supplier? 
  This will show that the product meets the requirements of the current mandatory standard. The approval certificate will show that the appliance or article is approved for sale. 
• Have I contacted the federal, state or territory Fair Trading and Consumer Affairs agencies to check for other bans or mandatory standards?
  This will be necessary if you are supplying the product nationally or into another state.
• Have I checked for product recalls on the national recalls website www.recalls.gov.au?
  This site provides current product recall information.
• Have I contacted the peak industry body or association?
  You can often obtain useful information about your industry from such organisations.
• Should my business consider some type of liability insurance?
  Someone injured using a product you supplied may be eligible for compensation.
• Do I have accurate business records and am I able to identify individual products through copies of invoices?
  You will need to provide Fair Trading with details of the supplier if a product you have sold does not comply with a ban or mandatory standard.

The role of Fair Trading

Fair Trading's Product Safety Officers regularly check the marketplace for unsafe products and assess compliance with the various mandatory safety and information standards.

Where problems do occur with a product, Fair Trading has powers to instruct retailers or suppliers to remove the unsafe goods from sale and may include requiring businesses to recall dangerous products.

Voluntary recalls

Voluntary recalls occur when manufacturers and distributors act promptly, on their own initiative, to remove or rectify unsafe products that have been sold to the public.

If you organise a voluntary recall of defective goods, you must notify State and Territory Fair Trading and Consumer Affairs agencies, including the NSW Commissioner for Fair Trading, within two days of deciding to conduct a recall.

The NSW Commissioner for Fair Trading may also order traders or suppliers to conduct a mandatory recall where a product is shown to be defective or of a kind that may cause death or injury.

The Parliamentary Secretary to the Treasurer must also be notified of any recalls, whether mandatory or voluntary.

More information about product recall notifications can be found at www.recalls.gov.au

Electrical appliances

Electrical appliances also need to comply with certain laws. The Electricity (Consumer Safety) Act 2004 requires electrical appliances be designed and manufactured so they will not, in normal use, result in electric shock, injury or death to the user or fire damage to the user's property.

Fair Trading administers a compulsory pre-sale certification scheme for specific types of electrical appliances, and a voluntary certification scheme for all other electrical products.

IMPORTANT – Fair Trading maintains records of electrical accidents and analyses the data to improve the safety of electrical appliances.

Gas appliances

Need more information?

For additional information about product safety and standards or product recall procedures, contact the Office of Fair Trading's Safety and Standards Branch on 8467 4400.

Contacts

Parliamentary Secretary to the Treasurer
c/o Australian Competition and Consumer Commission (ACCC)
PO Box 1199
Dickson ACT 2602
Tel: 1300 302 502
Fax: 6243 1073
Website: www.accc.gov.au

NSW Commissioner for Fair Trading
PO Box 972
Parramatta NSW 2124
Tel: 9895 0111