The Australian Competition and Consumer Commission (ACCC) has called for stronger product safety laws to prevent dangerous goods being sold through online marketplaces.

The regulator said the growth of online marketplaces and stores had outpaced Australia’s existing safety framework, leaving gaps that can expose consumers, including children, to harm.

Its comments came in response to a designated complaint from consumer group CHOICE, which warned that unsafe, banned and prohibited products were reaching Australians online at scale.

The ACCC acknowledged the Australian Consumer Law has limitations when sellers are based overseas or marketplaces act only as intermediaries rather than direct suppliers.

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

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“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.”

The Federal Government has tasked Treasury with strengthening the framework, potentially through mandatory obligations for online marketplaces, tougher penalties and improved injury-reporting requirements.

The ACCC also supports exploring a general safety provision covering all consumer goods. Australia currently has no broad law preventing the sale of unsafe products.

Recent enforcement activity has highlighted the risks. In August, the Federal Court upheld a $14 million penalty against City Beach for selling products that failed to comply with button battery standards.

The regulator is also investigating potentially deadly toys containing small high-powered magnets sold online. It issued takedown requests to Amazon, eBay, Kogan and Fruugo in June.

In May, the ACCC launched Federal Court proceedings against Amazon Australia over allegations that children’s unicorn backpacks failed to carry mandatory button battery warnings.

Amazon Australia, eBay Australia, AliExpress, Temu, Gumtree and Fruugo have signed the ACCC’s voluntary Australian Product Safety Pledge, committing to monitor and remove unsafe listings.

However, the watchdog said regulatory reform was central to resolving the broader problems raised by CHOICE. It will not open an investigation into the complaint’s specific examples but will continue pursuing unsafe-product cases where appropriate.

Consumer Affairs ministers identified a comprehensive review of Australia’s product safety laws as a reform priority in July.