The Ministerial Council on Consumer Affairs (MCCA) today agreed to implement significant reform of Australia’s consumer product safety regulatory arrangements, for the benefit of consumers and businesses.
“Today the Commonwealth, State and Territory Governments have reached an historic and landmark agreement that will see the creation of a single, national product safety law and framework,” Mr Bowen said.
“This is a significant break through in reforming consumer protection laws in Australia and is another clear example of the Rudd Government’s approach to cooperative federalism.
“These reforms will provide significant cost savings for business and provide greater protection for consumers by streamlining the responsibilities of the Commonwealth and the States and Territories.”
The reforms agreed today will:
- remove legal uncertainty for businesses operating across state borders by creating a single national law for product safety, including product bans, standards and recalls;
- enhance protection for consumers by allowing the Australian Competition and Consumer Commission and the State and Territory offices of fair trading to jointly enforce the national law; and
- reduce regulatory overlap by giving the Commonwealth sole responsibility for making permanent product bans and safety standards. The States and Territories will retain the power to issue interim product bans, which would remain in effect for 60 days with a capacity for a 30 day extension if necessary.
“Australian consumers expect swift action to be taken to remove dangerous products from the Australian community, as soon as possible and regardless of which state or territory those hazards are first identified in,” Mr Bowen said.
“These changes reflect the increasingly national nature of consumer product markets and would not have been possible without the constructive and open-minded approach taken by all consumer affairs ministers at the Ministerial Council meeting.
“I can also announce that Ms Ruth MacKay will head up the ACCC’s new Product Safety Branch, commencing on Monday 26th May 2008. This new branch will continue the strong focus on product safety at the national level.”
In the past 12 months, ACCC enforcement of product safety standards and bans has led to approximately:
- 16 enforceable undertakings;
- 4 cases taken to litigation; and
- In late 2006, a prosecution resulting in record penalties of more than $800,000 (ACCC v Skippy Australia for supplying non-compliant, unsafe cots and baby walkers).
“The reforms announced today deliver on COAG’s commitment made at its meeting on 26 March 2008, to develop an enhanced national approach to product safety regulation and also respond to one of the 27 regulatory hot spots outlined by COAG’s Business, Regulation and Competition Working Group.”
It is anticipated that the revised regulatory arrangements will be fully implemented by 2010.
Copies of MCCA’s communiqué from its meeting today are available at the following link: www.consumer.gov.au
Contact: James Cullen - 0409 719 879