Consumer Affairs Victoria (CAV) is seeking to shut down discount retailer Panda Mart’s two Melbourne stores over allegations it has continued to sell unsafe and incorrectly labelled products despite repeated regulatory action.
The consumer watchdog has applied to the Victorian Supreme Court for an injunction that would require Panda Mart’s Cranbourne and Preston stores to stop trading until strict compliance measures are met.
The action follows inspections of both stores earlier this year, during which CAV product safety officers allegedly found incorrectly labelled, dangerous and permanently banned products.
These included scented candles with decorations that caught alight, light-up keychains with inadequately secured button batteries, and portable pools and flotation devices without mandatory warning labels.
If the injunction is granted, Panda Mart would be required to close both stores and notify customers through its website, social media accounts and shopfronts.
CAV would also be permitted to remove and destroy unsafe, banned and incorrectly labelled products, while Panda Mart employees would need to complete training and the retailer would be required to implement a formal compliance program approved by CAV director Nicole Rich before reopening.
“Product safety standards are there to protect consumers. It doesn’t matter whether you’re a high-end boutique or a discount store – you’re responsible for ensuring that all the items on your shelves are safe and labelled properly,” Rich said.
“Being cheap isn’t a licence to skimp on safety standards. People should be able to shop for a good bargain without putting their or their kids’ safety at risk.”
The latest action follows a series of warnings and enforcement measures against Panda Mart’s Victorian operations.
CAV issued public warnings about the retailer in March 2025 and again in March this year, while in December 2025 it secured an urgent injunction temporarily preventing the Cranbourne and Preston stores from trading.
In January, CAV filed 147 criminal charges against the company operating Panda Mart’s Cranbourne store for allegedly offering unsafe products for sale.
The latest legal action comes as Panda Mart continues to expand its Australian footprint, recently opening its first Queensland store in Rocklea, Brisbane, adding to its Cranbourne and Preston locations.
Queensland regulators conducted a compliance operation involving the Office of Fair Trading and Electrical Safety Office ahead of the Rocklea store opening, amid scrutiny of the retailer’s product safety record in Victoria.
The expansion means Panda Mart is entering a new Australian market at the same time as its two Victorian stores face the prospect of being prevented from trading.
Rich said CAV believed stronger intervention was necessary after repeated warnings and enforcement action.
“Panda Mart should not be allowed to operate until it can demonstrate that it meets its product safety responsibilities under the Australian Consumer Law,” she said.
The Supreme Court is expected to rule on CAV’s application in September.
