Business

Choice lodges ‘super’ complaint with ACCC over unsafe online marketplace products

Investigation reveals banned items including fake cigarettes and gel blasters on major platforms, prompting calls for urgent legislative reform.

Author
Owen Mercer
Markets and Finance Editor
Published
Draft
Source: The Guardian Business · original
Business
No image available
Consumer advocacy group targets regulatory gaps in digital trade

Consumer advocacy group Choice has lodged a formal ‘super’ complaint with the Australian Competition and Consumer Commission (ACCC), citing a significant failure in online product safety standards. The complaint follows an investigation that identified dangerous and permanently banned items, such as fake cigarettes, gel blasters, and toy-like novelty lighters, being sold on major digital marketplaces including eBay, Amazon, and AliExpress.

The group described the findings as “frightening,” noting that items such as flick knives, butterfly knives, and fake tongue studs were available for purchase. Andy Thomas, Choice’s campaigns director, characterised gel blasters and knives as “essentially weapons.” While the group did not order these specific hazardous items to avoid legal consequences, they successfully purchased novelty lighters, fake cigarettes, and sky lanterns from Shein, all of which are banned in Australia due to fire risks or dangers to children.

Choice has designated this as a ‘super’ complaint, a mechanism reserved for serious systemic issues that compels the ACCC to respond within 90 days. The group is urging the regulator to take action against retailers and to review product safety laws to close what it describes as a “grey area” where online intermediaries currently evade compliance obligations. This move comes as the ACCC continues to prioritise unsafe consumer goods in digital markets, having recently taken court action against Amazon over button battery warnings and requested the removal of banned magnets.

Data from a nationally representative survey commissioned by Choice indicates the scale of the issue, revealing that 6 per cent of Australians who purchased products online in the past two years suffered an injury or property damage. Thomas noted that previous safety tests had also found goods such as cots and bassinets failing Australian standards, arguing that the current legal framework allows marketplaces to act as intermediaries without sufficient liability for non-compliant products.

In response to the growing concerns, Assistant Minister for Competition and Consumer Affairs Andrew Leigh confirmed that the federal budget includes funding to strengthen the product safety framework. This investment aims to introduce mandatory safety obligations for online marketplaces, enhance product recall capabilities, and increase penalties for businesses that endanger consumers. While Amazon and Shein stated they prioritise safety and use AI to monitor listings, and Temu added novelty lighters to a blocklist, Alibaba and eBay did not respond by deadline.

Continue reading

More from Business

Read next: Influencer’s Videos Spark National Debate on Scientific Integrity in China
Read next: USDA Secretary: Food Supply Secure Following Texas Screwworm Cases
Read next: IEEFA report reveals commercial solar lagging behind residential boom in Australia