AustraliaI was injured by a recalled product that the manufacturer knew was dangerous. What extra damages can I claim?
In Australia, if a manufacturer knowingly sold a dangerous recalled product, you may claim additional damages for 'mental harm' or 'exemplary damages' under certain state laws — but exemplary damages are rarely awarded and not available under the Australian Consumer Law.
What the Law Says
Australian law limits the types of extra damages available when injured by a recalled, dangerous product. The Australian Consumer Law (ACL) provides strict liability for defective goods, but does not permit exemplary (punitive) damages. Some state-based personal injury laws allow compensation for mental harm where the defendant’s conduct was intentional or reckless — but only if specific statutory thresholds are met.
Under the Australian Consumer Law (Schedule 2 of the Competition and Consumer Act 2010), manufacturers have a legal duty to ensure products are safe. Section 138 says: 'A person who supplies goods to the public is liable to compensate another person for damage suffered as a result of a safety defect in the goods.'
Section 271 reinforces this: 'A person who suffers loss or damage because of the supply of goods that do not comply with a consumer guarantee is entitled to recover the amount of the loss or damage from the supplier.' However, the ACL explicitly excludes exemplary damages: 'Nothing in this Schedule entitles a person to be awarded exemplary damages.'
For mental harm claims arising from physical injury caused by a defective product, state laws apply. In New South Wales, the Civil Liability Act 2002 (NSW) permits damages for mental harm if the harm is 'serious' — defined as 'a psychiatric illness or disorder' — and the defendant's conduct was 'intentional or reckless'. The maximum award for non-economic loss (including mental harm) is capped at $750,000 (indexed), per s. 16 of that Act.
Statutory TextNothing in this Schedule entitles a person to be awarded exemplary damages.
— Competition and Consumer Act 2010 (Cth), Sch 2, s. 274 — Exclusion of exemplary damages
Statutory TextA person who supplies goods to the public is liable to compensate another person for damage suffered as a result of a safety defect in the goods.
— Competition and Consumer Act 2010 (Cth), Sch 2, s. 138 — Liability for safety defect
Statutory TextA person who suffers loss or damage because of the supply of goods that do not comply with a consumer guarantee is entitled to recover the amount of the loss or damage from the supplier.
— Competition and Consumer Act 2010 (Cth), Sch 2, s. 271 — Remedy for failure to comply with consumer guarantee
What to Do
Gather evidence of the recall notice, manufacturer communications, and proof the company knew the product was dangerous before your injury.
Seek medical documentation linking your injury (and any resulting mental harm) directly to the product.
Consult a lawyer within 3 years of the injury to assess eligibility for non-economic loss (e.g., pain and suffering or mental harm) under your state’s civil liability law.
File a claim under the Australian Consumer Law for compensation covering medical costs, lost income, and other economic losses — but do not expect exemplary damages.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.