Competition and Consumer Act 2010 - Consumer Protection Notice No. 13 of 2011 - Permanent ban on inflatable toys, novelties and furniture containing beads

Administered by Department of the Treasury

Legislation au F2011L00222 In force Legislative Instrument

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explanatory STATEMENT

Issued by the Authority of the Parliamentary Secretary to the Treasurer

Competition and Consumer Act 2010

Permanent ban on inflatable toys, novelties and furniture containing beads

Background

Prior to 1 January 2011, a notice declaring goods to be unsafe was made pursuant to subsection 65C(5) of the Trade Practices Act 1974 (TPA) in relation to inflatable toys, novelties and furniture containing beads.

The Trade Practices Amendment (Australian Consumer Law) Act (No.2) 2010 together with the Trade Practices Amendment (Australian Consumer Law) Act (No.1) 2010, amended the TPA to implement a new national consumer law regime known as the Australian Consumer Law (ACL).

The TPA was renamed the Competition and Consumer Act 2010 (CCA) on 1 January 2011. The ACL forms Schedule 2 to the CCA.

Schedule 7 of the Trade Practices Amendment (Australian Consumer Law) Act (No.2) 2010 sets out the transitional matters relating to the commencement of the ACL. Item 2 of Schedule 7 provides that a notice under subsection 65C(5) of the TPA that was in force immediately before the commencement of the ACL takes effect ‘as if’ it were an interim ban imposed under section 109 of Schedule 2 to the CCA, starting on the day of commencement (1 January 2011). Therefore, an interim ban on inflatable toys, novelties and furniture containing beads came into force on 1 January 2011. An interim ban under the ACL exists for a period of 60 days and is able to be extended on two separate occasions by a period of 30 days.

Subsection 114(1) of Schedule 2 to the CCA provides that the Commonwealth Minister may impose a permanent ban on consumer goods of a particular kind if an interim ban exists for those goods, or it appears to the Commonwealth Minister that consumer goods of that kind will or may cause injury to any person or a reasonably foreseeable use (including misuse) of consumer goods will or may cause injury to any person. A permanent ban on inflatable toys, novelties and furniture containing beads is imposed pursuant to subsection 114(1)(a) of Schedule 2 to the CCA.

Permanent ban on inflatable toys, novelties and furniture containing beads

Inflatable toys and novelties are made of soft plastic or other similar material and are designed to be inflated. Sometimes the toys and novelties also contain loose pellets or small particles, generally made from polystyrene or a similar synthetic material. Examples of such products include inflatable toy hammers, balls, children’s chairs, plastic lounges and footstools.


The purpose of the permanent ban on these goods is to ensure ongoing consumer safety by prohibiting the supply of inflatable toys, novelties and furniture containing beads. The hazard associated with these goods is that young children may easily access polystyrene beads or other types of pellets in inflatable toys, novelties and furniture because:

  • PVC plastic inflatable products may burst or puncture when in contact with sharp objects
  • synthetic material is known to weaken with age, and PVC plastic may deteriorate to the point where it bursts and the beads fall out.

Children can suffer illness and respiratory infections of the airways and lungs after inhaling beads. They can also suffocate after lightweight beads that are very difficult to dislodge stick in the throat and block the airways. Risks are increased as medical experts may have difficulty diagnosing the cause of an associated illness because inhaled or swallowed beads do not show up on X‑rays and are extremely difficult to locate inside the body. Young children have died after inhaling or swallowing polystyrene beads.

Under the CCA, a permanent ban on inflatable toys, novelties and furniture containing beads is a legislative instrument for the purposes of the Legislative Instruments Act 2003 (LIA). For the purposes of section 17 of the LIA, consultation has been undertaken both at the time the notice was made under subsection 65C(5) of the TPA and also in January 2011 when the proposed ban notice was published on the internet in accordance with subsection 132(3) of Part XI to the CCA. There are no known suppliers of these banned goods.

This instrument is subject to sunsetting under Part 6 of the LIA. Unless action is taken to defer or exempt it from sunsetting, it is expected to sunset on 1 April 2021. This estimate assumes it is registered on or before 31 March 2011.

Overview

The Competition and Consumer Act 2010 (CCA) was enacted to implement the Australian Consumer Law (ACL) and address consumer protection issues, including the safety of consumer goods. One such issue addressed by the Act is the risk associated with inflatable toys, novelties, and furniture containing beads, which pose significant hazards to young children. This problem was identified prior to the Act's enactment under the Trade Practices Act 1974 (TPA). The CCA, which took effect on 1 January 2011, incorporates the ACL as Schedule 2 and continues the interim ban on these products, allowing for a permanent ban if deemed necessary. The policy objective of the permanent ban is to ensure ongoing consumer safety by prohibiting the supply of these goods due to the risk of injury from inhaling or swallowing beads, which can lead to severe health issues and even death.

Scope and Application

The Competition and Consumer Act 2010 (CCA) applies to the prohibition of the supply of inflatable toys, novelties, and furniture containing beads to ensure consumer safety. The Act pertains to any person or entity involved in the manufacture, import, sale, or distribution of these products within Australia. The geographic reach of the Act is national, as it is a Commonwealth Act. The ban is intended to protect consumers, particularly children, from the hazards associated with these products, including choking and respiratory issues caused by polystyrene beads. The ban is a legislative instrument under the CCA and is subject to sunsetting provisions, meaning it is expected to sunset on 1 April 2021 unless deferred or exempted. The Act does not specify exclusions, exemptions, or thresholds for its application, but rather broadly prohibits the supply of the identified goods to mitigate potential harm.

Key Provisions

The Competition and Consumer Act 2010 (CCA) (section 114(1)) imposes a permanent ban on the supply of inflatable toys, novelties, and furniture containing beads. This ban was initially introduced as an interim measure under the Trade Practices Act 1974 (TPA) and was transitioned to the CCA when it came into effect on 1 January 2011. This ban is designed to protect consumers, particularly young children, from the hazards associated with these products, which include the risk of injury or death from inhaling or swallowing polystyrene beads or similar particles. The ban is intended to remain in force indefinitely, though it is subject to sunsetting provisions under the Legislative Instruments Act 2003 (LIA), which would require it to be reviewed or renewed by 1 April 2021 if not acted upon beforehand. The Act places obligations on manufacturers, importers, and suppliers to ensure they do not supply these banned items. This includes a requirement to refrain from advertising, promoting, or otherwise making available any inflatable toys, novelties, or furniture containing beads for sale. Suppliers must also ensure that these items are not stocked, displayed, or otherwise made available for consumer purchase. Additionally, the Act mandates that any existing stock of these items be disposed of in a manner that prevents their re-entry into the supply chain. The CCA imposes both civil and criminal penalties for breaches of the ban. Civil penalties can include fines of up to $1.1 million for corporations and $220,000 for individuals, as stipulated in section 136. Criminal penalties are also applicable, with individuals potentially facing imprisonment for up to five years or fines of up to $275,000, or both, under section 137. These penalties underscore the seriousness with which the legislation treats violations of the ban on these hazardous products. The Act also provides for the possibility of additional penalties under other sections, depending on the nature and extent of the breach.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.