Product Safety Standards for Imported Products – Panda Mart a case in point

If it’s too good to be true, there may be a reason that product is so cheap! In recent weeks, Australian social media went crazy about the newly opened ‘Panda Mart’, a South-African discount super-store offering thousands of low-cost household items manufactured overseas, mainly from China.

Due to the low production costs the products were offered for sale at very low prices – well below competing products that were manufactured to relevant Australian Standards.

Social media and content creators created a frenzy in relation to the products being offered at Panda  Mart at their Cranbourne store, requiring extra security including the Police to manage the crowds.

Offering heavily reduced products compared to the big branded products in the current economic climate, has driven their sales and led to some bad behaviour at the store.

Panda Mart came to the attention of the regulator, who held concerns about many of the products being sold and whether they met required Australian standards.

After an inspection on site at the Panda Mart store, Consumer Affairs seized thousands of products, they believed did not meet product safety standards in Australia. They then issued an urgent Public Warning regarding baby toys and products with unsecured batteries that could be easily consumed, projectiles, products posing choking or strangulation hazards and chemically unsafe cosmetics.

Consumer Affairs Director Nicole Rich stressed the obligations on manufacturers and importers to ensure minimum Australian safety standards are met to avoid injury and even death.

This case shows the issues around ‘free market’ ideals and balancing them against protection of consumer rights. The adage ‘you get what you pay for’ still applies, and even more so in this digital era. Panda Mart was enjoying huge returns and revenue on products that were dangerous to the consumer and which were cheaply manufactured.

The follow up to this is the damage caused to their Panda Mart business and its reputation from the  action taken by Consumer Affairs, the recall of all the products and risk of litigation. It could also risk possible class actions by consumers who may be injured or affected by the poor-quality products.

As a manufacturer importer or distributor of products manufactured overseas clients should always check the Australian Laws and standards.

Sanicki Lawyers Licensing and Distribution Group can assist clients to ensure they are compliant with the Australian laws and they do not suffer the same fate as Panda Mart.