Trade Practices (Consumer Product Safety Standard) (Reduced Fire Risk Cigarettes) Amendment Regulations 2009 (No. 1)

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Legislation au F2009L01271 Regulations Not in force Legislative Instrument

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explanatory Statement

Select Legislative Instrument 2009 No. 66

Issued by the Authority of the Minister for Competition Policy and Consumer Affairs

Trade Practices Act 1974

Trade Practices (Consumer Product Safety Standard) (Reduced Fire Risk Cigarettes) Amendment Regulations 2009 (No. 1)

Subsection 172(1) of the Trade Practices Act 1974 (the Act) provides, in part, that the Governor-General may make regulations not inconsistent with the Act, prescribing all matters that are required or permitted by the Act to be prescribed or are necessary or convenient to be prescribed for carrying out or giving effect to the Act.

Paragraph 65C(1)(a) of the Act provides that a corporation shall not, in trade or commerce, supply goods that are intended to be used, or are of a kind likely to be used, by a consumer, if there is a consumer product safety standard for those goods and they do not comply with that standard.

Subsection 65C(2) of the Act provides that a regulation may, in respect of goods of a particular kind, prescribe a consumer product safety standard consisting of such requirements as are reasonably necessary to prevent or reduce risk of injury to any person.  These requirements may relate to, among other things, performance, design, or construction of the goods; testing of the goods; and the markings, warnings or instructions to accompany them.

The Trade Practices (Consumer Product Safety Standard) (Reduced Fire Risk Cigarettes) Regulations 2008 were made last year and set out a safety standard for manufactured cigarettes to reduce the risk of death or injury caused by fires which result when smouldering cigarettes inadvertently come into contact with flammable materials.  The standard requires that cigarettes are manufactured so that they will ordinarily self-extinguish when they are not being smoked rather than proceeding to a full-length burn, and applies to all cigarettes manufactured in or imported into Australia after 23 March 2010.  After that date, cigarette retailers have 12 months to on-sell non-compliant stock to the ultimate consumer.

The purpose of these Regulations is to amend the safety standard, to reduce the period during which suppliers of non-complying cigarettes can dispose of their stock from 12 months to 6 months so that after 23 September 2010 (ie before the beginning of the 2010 – 11 bushfire season, rather than after), all cigarettes sold in Australia will need to comply with the mandatory standard, irrespective of their date of manufacture or importation. 

Details of the Regulations are in the Attachment.

The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.  For the purposes of section 17 of that Act, consultation was undertaken with Imperial Tobacco, British American Tobacco Australia and Philip Morris, which between them account for nearly 98% of the cigarettes manufactured in or imported into Australia.  While these companies are well placed to represent cigarette suppliers at all levels of the supply chain, the National Independent Retailers Association was also consulted.

The Regulations commence on the day after they are registered on the Federal Register of Legislative Instruments.

Attachment

Details of the Trade Practices (Consumer Product Safety Standard) (Reduced Fire Risk Cigarettes) Amendment Regulations 2009 (No. 1)

 

Regulation 1 – Name of Regulations

This regulation provides that the name of the Regulations is the Trade Practices (Consumer Product Safety Standard) (Reduced Fire Risk Cigarettes) Amendment Regulations 2009
(No. 1).

Regulation 2 – Commencement

This regulation provides that the Regulations commence on the day after they are registered.

Regulation 3 – Amendment of Trade Practices (Consumer Product Safety Standard) (Reduced Fire Risk Cigarettes) Regulations 2008

This regulation provides that the Trade Practices (Consumer Product Safety Standard) (Reduced Fire Risk Cigarettes) Regulations 2008 (the Principal Regulations) are amended by Schedule 1.

Schedule 1 – Amendment

This schedule provides for an amendment to subregulation 4(2) of the Principal Regulations.

Item [1] Subregulation 4(2)  This item substitutes a 24 month period for the period of 30 months provided by the Principal Regulations.  The Principal Regulations require cigarettes manufactured or imported on or after 23 March 2010 to comply with a mandatory performance standard.  In essence, the standard requires that cigarettes are manufactured so that they will ordinarily self-extinguish when they are not being smoked rather than proceeding to a full-length burn.  After 23 March 2010, cigarette retailers have 12 months to on-sell non-compliant stock to the ultimate consumer.  This amendment of the Regulations will reduce this ‘sell-through’ period to 6 months.

 

Overview

The Trade Practices (Consumer Product Safety Standard) (Reduced Fire Risk Cigarettes) Amendment Regulations 2009 (No. 1) were enacted to address the problem of fire-related injuries and fatalities caused by smouldering cigarettes inadvertently coming into contact with flammable materials. This legislation amends the Trade Practices (Consumer Product Safety Standard) (Reduced Fire Risk Cigarettes) Regulations 2008, which set a safety standard for manufactured cigarettes to reduce fire risks. The Australian Parliament, through the Minister for Competition Policy and Consumer Affairs, introduced these Regulations to ensure that all cigarettes sold in Australia comply with the mandatory safety standard before the start of the 2010-11 bushfire season. The policy objective is to expedite the phase-out of non-compliant cigarettes in the market by reducing the period during which suppliers can dispose of their stock from 12 months to 6 months.

Scope and Application

The Trade Practices (Consumer Product Safety Standard) (Reduced Fire Risk Cigarettes) Amendment Regulations 2009 (No. 1) applies to corporations engaged in the supply of cigarettes in trade or commerce within Australia. The Act mandates that these corporations must not supply cigarettes that do not meet the specified consumer product safety standard designed to reduce the fire risk associated with cigarettes. The safety standard pertains to the design, performance, and construction of cigarettes, ensuring they self-extinguish when not in use to prevent fires. The Regulations amend the previously established Trade Practices (Consumer Product Safety Standard) (Reduced Fire Risk Cigarettes) Regulations 2008 by reducing the period for retailers to sell non-compliant stock from 12 months to 6 months post-23 March 2010. This amendment ensures that by 23 September 2010, all cigarettes sold in Australia comply with the mandatory safety standard, irrespective of their date of manufacture or importation. The Regulations are made under the authority of the Trade Practices Act 1974 and commence on the day after their registration on the Federal Register of Legislative Instruments.

Key Provisions

The Trade Practices (Consumer Product Safety Standard) (Reduced Fire Risk Cigarettes) Amendment Regulations 2009 (No. 1) primarily amend the Trade Practices (Consumer Product Safety Standard) (Reduced Fire Risk Cigarettes) Regulations 2008, focusing on the period within which cigarette retailers can sell non-compliant stock. Regulation 3 amends the Principal Regulations by reducing the sell-through period for non-compliant cigarettes from 12 months to 6 months. This change is specified in Schedule 1, Item [1], which modifies subregulation 4(2) of the Principal Regulations. The Regulations aim to ensure that all cigarettes sold in Australia comply with the mandatory safety standard by 23 September 2010, before the beginning of the 2010-11 bushfire season. These Regulations impose specific obligations on cigarette manufacturers and retailers. Manufacturers must ensure that cigarettes manufactured or imported after 23 March 2010 comply with the mandatory safety standard, which requires that cigarettes self-extinguish when not in use. Retailers are required to sell any non-compliant stock within the amended 6-month period after the Regulations' commencement. This obligation is designed to ensure that all cigarettes sold in Australia meet the safety standard, thereby reducing the risk of fires caused by smouldering cigarettes. Breach of the safety standard outlined in these Regulations can lead to significant consequences. Under the Trade Practices Act 1974, a corporation that supplies non-compliant cigarettes in trade or commerce can be subject to civil penalties. The maximum penalty for such an offence is $1.1 million for a corporation. Additionally, under section 82 of the Act, a court can order the offender to pay compensation to any person who has suffered loss or damage due to the contravention. This means that not only does the corporation face substantial fines, but they also risk additional financial burdens if they fail to comply with the safety standards set forth by the Regulations.

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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.