The Australia Cyber Security Act 2024 provides a staged enforcement path for smart device non-compliance under Division 3 of Part 2. This Australia Cyber Security Act 2024 FAQ answer walks through all three steps and the public notification power.
The first step is a compliance notice under Section 17. The Secretary may issue a compliance notice if the Secretary is reasonably satisfied that the entity is not complying with an obligation under Section 15 or 16, or is aware of information suggesting possible non-compliance. The notice must set out the name of the entity, brief details of the non-compliance, specify corrective action, and set a reasonable period for completion. Before issuing the notice, the Secretary must give the entity at least 10 days to make representations under Section 17(3). Only one compliance notice may be given per instance of non-compliance.
The second step is a stop notice under Section 18. The Secretary may issue a stop notice only if a compliance notice has already been given and the entity has either failed to comply or taken inadequate corrective action. The stop notice can require the entity to take or refrain from taking specified action. Again, the entity must receive at least 10 days to make representations before the notice is issued.
The third step is a recall notice under Section 19. The Secretary may issue a recall notice only if a stop notice has already been given and the entity has failed to comply or taken inadequate corrective action. The recall notice can require the entity to prevent acquisition of the product in Australia, prevent supply to other suppliers, or arrange for the return of the product to the manufacturer. If the entity fails to comply with a recall notice, Section 20 allows the Minister to publish the identity of the entity, details of the product, details of the non-compliance, and the associated risks on the Department website or in any other way the Minister considers appropriate.
Section 23 provides an additional tool. The Secretary may engage an independent expert to examine the product and determine whether it complies with the security standard and whether the statement of compliance meets the requirements. The entity is entitled to reasonable compensation from the Commonwealth for providing the product for testing.