EXPLANATORY STATEMENT
Consumer Goods (Self-balancing Scooters) Amendment Safety Standard 2021
Overview
The Assistant Treasurer, Minister for Housing and Minister for Homelessness, Social and Community Housing (the Minister) has amended the safety standard for self-balancing scooters, pursuant to section 104 of the Australian Consumer Law, which is Schedule 2 of the Competition and Consumer Act 2010 (Cth).
This instrument amends the Consumer Goods (Self-balancing Scooters) Safety Standard 2018 (the safety standard), which was previously amended by the Consumer Goods (Self-balancing Scooters) Amendment Safety Standard 2019.
The purpose of this amendment is to remove the self-repeal provisions from the safety standard. This will maintain the standard so that it remains in force to provide a minimum level of safety for self-balancing scooters.
Background
In March 2016, the Australian Government introduced an interim ban on self-balancing scooters that did not meet specific safety requirements. This ban was replaced by a mandatory safety standard in July 2016. This regulation was then re-made in 2018 as the current safety standard.
The purpose of the safety standard is to reduce the risk of injury and death that may occur from house fires caused by self-balancing scooters igniting during or after charging. Low quality lithium-ion batteries are prone to ‘thermal runaway’ which is a complex combination of chemical reactions and/or electrical shorting inside the cell that are initiated by excessive heat, causing an electrical fire. This amendment does not alter the minimum level of safety required by the safety standard.
The safety standard was introduced to address a regulatory gap that exists in some state and territory electrical safety regimes, which do not regulate extra-low voltage electrical products, including self-balancing scooters.
Since 2018 the operation of Commonwealth regulation over self-balancing scooters has been extended twice. This was intended to provide sufficient time for states and territories to make appropriate amendments to their regulatory frameworks to regulate products powered by an extra-low voltage power source. However, in 2021 a regulatory gap remains which prevents consistent regulation by specialist state and territory regulators. Therefore, this amendment continues to ensure a minimum level of safety for self-balancing scooters.
The amendment
This legislative instrument amends the Consumer Goods (Self-balancing Scooters) Safety Standard 2018 to remove the self-repeal provisions from the safety standard.
Consultation
Consultation was not required due to the administrative nature of the amendment. The ACCC has notified stakeholders of the amendment to the safety standard.
Disallowance
This legislative instrument is not subject to disallowance due to section 44 of the Legislation Act 2003 (Cth).
Commencement
This legislative instrument commences on the day after it is registered on the Federal Register of Legislation.
Sunsetting
This legislative instrument is not subject to sunsetting due to section 54 of the Legislation Act 2003 (Cth).
Regulation impact assessment
The Office of Best Practice Regulation advised that a Regulation Impact Statement was not required (OBPR reference ID 21529).
Overview
The Consumer Goods (Self-balancing Scooters) Amendment Safety Standard 2021 was enacted to amend the safety standard for self-balancing scooters, as part of the Australian Consumer Law. This amendment was made by the Assistant Treasurer, Minister for Housing and Minister for Homelessness, Social and Community Housing, under the authority of the Competition and Consumer Act 2010. The primary objective of this legislation was to address a regulatory gap in state and territory electrical safety regimes by ensuring a minimum level of safety for self-balancing scooters. Specifically, it aimed to reduce the risk of house fires caused by the ignition of these scooters during or after charging due to low-quality lithium-ion batteries. This amendment removes the self-repeal provisions from the safety standard, maintaining it in force to continue providing a minimum safety level for these consumer goods.
Scope and Application
The Consumer Goods (Self-balancing Scooters) Amendment Safety Standard 2021 applies to all self-balancing scooters sold in Australia. It is designed to ensure that these products meet a minimum safety standard, particularly in terms of their battery safety to prevent thermal runaway and subsequent electrical fires. This amendment maintains the current safety standard, which was originally introduced in 2018, by removing its self-repeal provisions. The amendment is necessary because some state and territory jurisdictions have not yet updated their regulations to cover self-balancing scooters, which are powered by extra-low voltage sources. As a result, this Commonwealth regulation continues to fill the regulatory gap by providing a national standard that ensures the safety of consumers using these products. The amendment does not alter the safety requirements previously set out but ensures that the standard remains in force indefinitely, thus protecting consumers from potential hazards associated with poorly manufactured lithium-ion batteries.
Key Provisions
The main operative sections of this legislative instrument, the Consumer Goods (Self-balancing Scooters) Amendment Safety Standard 2021 (F2021L00937), involve the amendment of the Consumer Goods (Self-balancing Scooters) Safety Standard 2018 (paragraph 1). This amendment specifically removes the self-repeal provisions from the safety standard, which means that the safety standard will no longer automatically expire but will instead remain in force indefinitely (paragraph 2). This is intended to maintain the minimum level of safety required for self-balancing scooters and to prevent injuries and fatalities associated with house fires caused by these devices.
The Consumer Goods (Self-balancing Scooters) Amendment Safety Standard 2021 imposes obligations on manufacturers, importers, and suppliers of self-balancing scooters to ensure that their products comply with the safety standard (section 3 of the Competition and Consumer Act 2010). This includes ensuring that the scooters are designed, manufactured, and supplied with appropriate safety features to prevent fires and other hazards. Additionally, it requires that the products meet the safety requirements outlined in the Consumer Goods (Self-balancing Scooters) Safety Standard 2018, such as the use of lithium-ion batteries that are designed to prevent thermal runaway and other fire-related incidents.
There are no specific offences, penalties, or consequences outlined in this legislative instrument for breach of the safety standard. However, non-compliance with the Consumer Goods (Self-balancing Scooters) Safety Standard 2018 could potentially lead to legal action under the Australian Consumer Law, which is Schedule 2 of the Competition and Consumer Act 2010. Such actions could include fines, corrective notices, and other enforcement measures taken by the Australian Competition and Consumer Commission (ACCC) or other relevant authorities. The exact penalties for non-compliance would depend on the nature and severity of the breach, as well as any relevant case law or precedents.