About Product Recalls

This Topic Includes:

Have your say on Product Recalls
 

From time to time unsafe products may need to be recalled.

A high profile, open and successful recall will give a strong positive message to your customers, who will see that your company is working in their best interests.

We can offer advice and if consumers contact us about the product we know that action has been taken.

Most recalls are initiated voluntarily by manufacturers or importers when they become aware of a fault in a product.

To carry out a voluntary recall the Ministry provides a guide to recalling unsafe products.

Fair Trading Act - compulsory product recalls 

Compulsory product recalls can be ordered by the Minister of Consumer Affairs under Section 32 of the Fair Trading Act 1986 if:

the goods are likely to cause injury, OR

do not comply with a prescribed standard, OR

they are goods in respect of which an unsafe goods notice banning the goods is in force (Section 32), AND

the supplier has not recalled the goods or taken satisfactory action to recall the goods.

The Minister can require the suppliers at their own expense to do all or any of the following:

• recall the goods
• inform the public why or how the goods are unsafe or about any other matter relating to the goods which the Minister specifies
• repair or replace the goods, or
• refund sums of money to purchasers.

It is an offence under the Fair Trading Act 1986 to supply, or offer to supply, or advertise to supply any goods that do not comply with the requirements set out in a Product Safety Standard. The Courts may impose fines of up to $60,000 for any one individual, or up to $200,000 for a company.

Have your say on product recalls…

This year the Australian Competition and Consumer Commission (ACCC) has begun a review into the effectiveness of the product recall system. The recalls review will consider how to most effectively deal with unsafe goods that have been sold and are used by consumers.

The review will examine the current system for recalls, both within Australia and internationally, and identify those parts of the system which are functioning well and those where improvements could be made to achieve best practice.

For Business

The success of a recall is largely the result of the way business interacts with its customers - the way it communicates with customers about the problem and the way the recall is conducted. So it is important for this review to get feedback from businesses about their recall experiences: what has worked and what has not, as well as ways in which the government can help with the process.

The ACCC welcomes business’ insights into the current recalls system and your suggestions for ways in which it can be improved.

Go to the Recalls Questionnaire for Business [external website]

For Consumers

Every year an estimated 30 Australians are killed and a further 180-500 seriously injured when goods with manufacturing faults fail. Many more are hurt through design problems or the unintended use of products.

When unsafe products are identified, those that have already been sold are recalled from the post sale environment. Faults are sometimes not obvious to the consumer and can have potentially serious consequences – so an effective recall process is important for reducing the risk of injury.

The ACCC wants to know what you think about the current product recall system and your suggestions for ways it can be improved.

Go to the Recalls Questionnaire for Consumers [external website]