Compulsory product recalls
A compulsory product recall is what can happen if you don't take satisfactory action to voluntarily recall an unsafe product.
When a compulsory recall is required
If businesses don't take satisfactory action to mitigate the risks posed by unsafe goods, the Minister of Commerce and Consumer Affairs can issue a compulsory recall order under section 32 of the Fair Trading Act 1986.
The Minister can order a compulsory product recall where:
- the goods:
- are likely to cause injury to any person, or
- don't comply with a prescribed product safety standard, or
- are subject to an unsafe goods notice, and
- the supplier has not recalled the goods or taken satisfactory action to recall the goods.
The Minister can order businesses to do any or all of the following:
- recall the goods
- publish specified information to the public — and how this must be done
- provide a specified remedy, and
- complete the required actions by a specified date.
Costs of a compulsory recall
All of the costs involved with complying with a compulsory product recall are borne by the business or businesses specified in the order.
What happens if I don't comply?
If you don't comply with a compulsory product recall order — or continue to supply the recalled goods —you are breaching the Fair Trading Act and could be prosecuted and fined up to $600,000.