The Australian Retail Council (ARC) has backed the Federal Government's consultation on strengthening the national product safety framework, arguing any new rules must apply equally to offshore sellers as well as local retailers.
According to the ARC, requirements must be enforceable across every business selling into Australia, regardless of where it is based, as the safety standards holding local retailers accountable increasingly diverge from those governing offshore marketplaces.
ARC cited ACCC research showing 91 per cent of Australians believe products sold to them should meet local safety requirements even when the seller is based overseas. Yet Pattern's 2025 Australian research found only 12 per cent of consumers were confident in the quality of products sold by Temu, and 11 per cent in Shein's.
Combined annual Australian sales across Temu and Shein now sit above $4 billion, according to the ARC. That estimate sits alongside ASIC filings obtained by Ragtrader showing Shein's Australian arm alone generated $1.53 billion in revenue in the 2025 calendar year, up almost 20 per cent, on a gross margin of just 4 per cent.
Speaking on the consultation, ARC chief executive Chris Rodwell said Australian retailers invest heavily in compliance, recalls and consumer protections, and argued every business selling into the country should be held accountable for the safety risks tied to its products.
"Product safety cannot stop at the border," he said, adding that consumers need to be able to trust that products meet the same standards whether bought locally or from an "ultra-cheap overseas online marketplace."
Rodwell said Australian retailers should not have to compete against such platforms on an uneven playing field, pointing to their rapid gains in market share against businesses that employ Australians and carry the full cost of meeting local safety and consumer law.
ARC is pushing for reforms that speed up product recalls and consumer notifications consistently across all sellers, sharpen mandatory reporting requirements so regulators can spot emerging risks earlier, hand the ACCC more practical and timely powers to act on serious safety risks, and strengthen enforcement and penalties for non-compliance.
Rodwell said reform should not translate into extra red tape for compliant Australian retailers, but should instead target businesses that fall short and currently face little consequence for doing so.
“This is a welcome first step, but it cannot be the last,” Rodwell said. “Governments across the OECD are already strengthening laws and placing greater responsibility on overseas ultra-cheap online marketplaces. Australia cannot afford to fall behind.”