Choice, Australia's peak consumer advocacy group, has formally referred multiple online marketplaces to the Australian Competition and Consumer Commission, alleging the sale of counterfeit cigarettes and children's toys constructed with enough force to cause serious injury. The referral, submitted Wednesday, names Amazon among several platforms where investigators documented products they describe as fundamentally unsafe. The ACCC confirmed it had received the submission and opened a preliminary assessment.
What Choice Found in Its Investigation
Choice testers purchased items from online retailers over an eight-week period and subjected them to basic safety assessments. The counterfeit cigarettes contained irregular levels of nicotine alongside foreign particulate matter not present in legitimate tobacco products. Of greater concern were certain toys — marketed as collector items — that testers found capable of expelling projectiles at velocities the group characterized as approaching thresholds used to classify weapons under Australian law.
"We purchased these ourselves. We tested them ourselves. And what we found was genuinely alarming," Choice chief executive Alan Kirkland told reporters in Canberra. The group compiled its findings into a 34-page dossier submitted alongside the formal referral to the ACCC.
Legal Threshold Crossed, Group Says
Choice argues the toy products in question meet the definition of unsafe goods under the Competition and Consumer Act 2010. The 2023 amendments to product safety regulations lowered the threshold for mandatory reporting of hazardous goods, meaning retailers who become aware of dangerous items on their platforms face potential penalties if they do not alert authorities within specified timeframes.
The cigarettes present a separate regulatory problem. Under Australian law, tobacco products must meet strict composition standards and carry specific health warnings. Counterfeit cigarettes sold online typically bypass these requirements entirely, creating both a public health risk and a tax evasion pathway.
Online Marketplace Liability Under Scrutiny
The referral puts pressure on how online marketplaces interpret their obligations under Australian consumer law. Unlike brick-and-mortar retailers, digital platforms have historically argued they function as intermediaries rather than sellers, limiting their direct liability for third-party listings. The ACCC has challenged this interpretation in previous cases, most notably in a 2022 Federal Court finding that held a major online retailer partially responsible for unsafe products sold through its Australian marketplace.
Choice's submission argues that platforms cannot continue sheltering behind that distinction once they have been notified of specific hazardous listings. The group estimates over 2,000 flagged product variants remain available across referred platforms despite its notifications.
Counterfeit Goods Flooding Australian Market
Australian Border Force data shows seizures of counterfeit goods at ports of entry increased by 18 percent in the 2023-24 financial year compared to the previous period. The agency intercepted approximately 6.4 million counterfeit items, with tobacco products and children's goods representing two of the fastest-growing categories. Customs officials note that online direct-to-consumer shipments have made enforcement increasingly difficult, as individual parcels below certain thresholds receive limited scrutiny.
The Australian Tax Office estimates unpaid tobacco duties on illicit cigarettes and cigarettes smuggled through online channels cost the federal government around $800 million annually. That figure does not include the health system costs associated with smoking-related illness from products of unknown composition.
Market Impact on Legitimate Retailers
Australian Toy Association executive director Megan Cox said her members have struggled to compete with cheap imitations that undercut legitimate manufacturers by as much as 60 percent. "Our members invest in safety testing, comply with mandatory standards, and pay relevant duties. Counterfeiters do none of that," Cox said. The association has separately lobbied the government for stronger import controls and platform accountability measures.
Pharmaceutical retailers have raised similar concerns about tobacco products sold through unofficial channels, arguing they lose sales to vendors who sidestep both product regulations and excise tax obligations.
What Happens Next
The ACCC's preliminary assessment will determine whether to launch a full investigation or refer the matter to state-based consumer affairs bodies. Commission chair Gina Cass-Gottlieb indicated in a statement that the body takes product safety referrals from advocacy groups seriously, particularly when testing documentation is provided. A decision on next steps is expected within 60 days.
If the ACCC proceeds with formal action, it could seek injunctions preventing the sale of specific product lines, impose civil penalties on platforms, or pursue criminal referrals for the most serious counterfeit tobacco cases. Recent amendments to the Competition and Consumer Act allow for penalties of up to $50 million for corporations found to have engaged in systematic conduct that creates serious risk to public health.
