Online marketplaces to face tougher product safety laws

Harry Booth

1st Sep 2026

Australia’s consumer watchdog has agreed that current product safety laws regarding online marketplaces have “limitations”, with the Federal Government working towards strengthening legislation.

It comes after consumer organisation Choice sent a complaint to the ACCC, citing concerns that the growth of such marketplaces has outpaced existing frameworks. The commission agreed that, under existing Australian Consumer Law, there are gaps that could harm customers.

“Australian consumers should be able to trust that products they purchase are safe, including when they buy goods online,” ACCC commissioner Luke Woodward said.

“We currently face challenges where sellers are based overseas or the online marketplace is not the direct supplier, making it difficult to prevent unsafe products sold through online marketplaces from reaching consumers.”

The Federal Government is leading the effort to strengthen the product safety framework. This will include stronger penalties, mandatory inquiry reporting, and new obligations for online marketplaces.

“We believe that many of the issues raised in the designated complaint are best addressed through regulatory reforms, including through clear obligations on online marketplaces,” Woodward added.

“We also support exploring options for new general safety protections relating to the safety of all consumer goods to further strengthen the product safety framework.”

Choice’s director of consumer impact, Andy Kelly, welcomed the ACCC’s commitment. 

“It’s extremely disappointing that we have a situation right now where our current laws are so weak that they don’t allow the regulator to act to protect people from clearly unsafe products,” he said. 

“The current whack-a-mole approach to product safety is failing consumers, leaving them in harm’s way. Our complaint highlighted that 6 per cent of people are harmed by products purchased online each year.”