The Australian Retail Council (ARC) has welcomed the Federal Government’s consultation on strengthening Australia’s product safety framework, saying reforms must level the playing field between Australian retailers and offshore businesses selling into the country.
ARC said any new requirements must apply consistently and be enforceable across every business selling to Australian consumers, regardless of where that business is based.
ARC CEO Chris Rodwell said Australia’s product safety rules must keep pace with the changing way Australians shop and some offshore businesses sell into Australia.
“Australian retailers, including Australian-based online stores, invest heavily in product safety, compliance, recalls and consumer protections. Every business selling into Australia should be expected to properly manage and be held accountable for the safety risks associated with its products,” Mr Rodwell said.
“Product safety cannot stop at the border. Consumers must be able to trust that products sold into Australia meet the same safety standards whether they buy from a local retailer or an ultra-cheap overseas online marketplace. There should be no safety gaps, yet currently some offshore marketplaces are not held to account for the safety standards Australians expect and governments require.”
Latest figures put the combined annual Australian sales of global marketplaces Temu and Shein at more than $4 billion.
Australians overwhelmingly agree. ACCC research shows 91% believe products sold to Australians should meet our safety requirements even when the seller is based overseas. Yet separate Pattern 2025 Australian research found only 12% of consumers expressed confidence in the quality of products sold by Temu and just 11% were confident in Shein products.
“Australian retailers should not have to compete with such ultra-cheap platforms with one hand tied behind their back,” said Mr Rodwell.
“Ultra-cheap offshore platforms are rapidly swallowing up market share from retailers that employ Australians, invest in local communities and carry the full cost of meeting Australian safety and consumer law. The rules must apply fairly, consistently and effectively to every business accessing the Australian market.”
ARC supports reforms that:
“Reform cannot mean another layer of red tape for responsible Australian retailers that already meet stringent product safety standards,” Mr Rodwell said.
“It must focus on businesses that fail to comply and face little consequence for failing to do so. Otherwise, we risk making an uneven playing field even worse.
“This is a welcome first step, but it cannot be the last. Governments across the OECD are already strengthening laws and placing greater responsibility on overseas ultra-cheap online marketplaces. Australia cannot afford to fall behind.
“ARC looks forward to working constructively with the Government to modernise the framework while ensuring the new requirements are clear, practical and proportionate.”
About us: Australian Retail Council (ARC) represents a $444 billion sector that employs 1.4 million Australians across metropolitan, regional, and remote communities – making retail the largest private sector employer in the country and a significant contributor to the Australian economy. Our membership spans the full spectrum of Australian retail, from family-owned small and independent retailers that make up 95% of our membership, through to our largest national and international retailers that employ thousands of Australians and support both metropolitan and regional communities every day.
