Has your part-time business exploded, or have you become obsessed with a niche area and are looking to turn a profit? Either way, selling your products at a market can be an excellent way of testing them with your customer base. This article will discuss some of your legal obligations when setting up a market stall.
What is a Market Stall?
A market stall is a temporary structure set up at a market to sell your products or services. You can sell almost any product from these stalls, and the stalls can be anything from a trestle table to a series of mobile clothes hangers. Often businesses will use these stalls to gauge consumer interest in their products as it is a relatively cheap and simple process.
Do I Need an ABN to Sell at a Market?
In broad terms, you will not need an ABN if you sell a particular product as a casual side hustle. However, you will need one if you are doing so as a business. So, how do you know if you are a business? The Australian Tax Office (ATO) – which grants ABNs – stipulates that having an ABN is required if you are “carrying on a business”. Unfortunately, no single definition explains what “carrying on business” means. However, the ATO will look to the examples below as features of business:
- Is the activity you are conducting a significant commercial activity involving commercial sales or services, and is your business of a reasonable size or scale?
- Are you intending to make a profit from your business, and is this shown in your business plan?
- Are you undertaking repeat business?
- Do you conduct your business in a systematic and organised way, including keeping business records?
- Are you carrying on your business in a way that is similar to other businesses in your field or area?
If any of these features apply to you, you may be “carrying on a business” and must have an ABN.
Continue reading this article below the formWhat Licences and Permits Do I Need?
Depending on the products you are selling and where your stall is situated, you may need to apply for specific permits or licences. If, for example, you are selling artisanal salami, you may need to apply for a temporary food stall licence. This will require an application to your local council and will grant you a licence for a set period. In another instance, what if your market stall position is on a footpath? Then you will need a footpath usage permit. You must identify the relevant licence or permits you need and apply for them well in advance. A good starting point to identify what permits you may need is through the Australian Business and License Information Service (ABLIS).
Do I Need Insurance?
Generally, when selling products or services, it is always a good idea to insure yourself or your business. Some market administrators may also require you to have certain insurances, such as public liability and product liability insurance. In addition, some insurance providers sell tailored packages, especially for market stall holders.
What Laws and Regulations Apply To My Product?
Similar to the above, it is crucial to consider what laws and regulations you must abide by when running your market stall. Indeed, these guidelines may differ depending on what product you sell. Therefore, we explore some laws and regulations below.
The Australian Consumer Law
No matter where you are selling, or the size of your business, so long as your product is a good or a service, you must comply with the Australian Consumer Law (ACL). Under the ACL, consumers (the people who purchase your goods or services) are protected by guarantees, such as:
- the goods they purchase will be of acceptable quality; and
- the good will be fit for purpose.
More importantly, you cannot mislead or deceive your customers as the supplier. Therefore, it is very important to understand your obligations and consumer guarantees under the ACL if you are selling goods or services.
Trade Measurement Laws
There are also several other laws and regulations that may affect you. If you are selling goods by measurement, for example, artisanal salami by weight or pine wood by length, you must comply with trade measurement laws. These laws ensure that your customers get what they pay for by defining the legal units of measurement used to sell certain products. Does your business have to comply with these laws? This depends on whether your business:
- sells goods by measurement (for example, by weight); and
- manufactures, packs, imports or sells pre-packaged goods.
If the answer is yes, you must comply with trade measurement laws.
Product Safety
No matter what you sell, you need to ensure that the goods are safe for your consumers and are not defective. These products will also be governed by a mandatory safety standard that you must comply with. Two types of mandatory product standards may apply to your products, safety standards and information standards. As both will apply, it is crucial to understand what is required of you.
Food Safety Standards
If you are selling food, perhaps a handcrafted cured meat product, then you must ensure that it complies with Australian Food Standards Code. This safety standard ensures that the food your consumers purchase is suitable for people to eat. These standards include obligations regarding how you manage:
- temperature control;
- cleanliness;
- hand washing; and
- labelling.
Each state and territory also has their own food regulation body and regulations, and you must familiarise yourself with them.
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Key Takeaways
If your casual side hustle has suddenly become popular, you might wish to run a stall at your local markets to access your booming customer base. However, before you begin, you will need to make several considerations. For instance:
- whether you need to register an ABN;
- licences and permits you must apply for;
- purchasing insurance; and
- the laws and regulations that apply to your product.
If you require assistance understanding your legal obligations when running a market stall, our experienced regulatory and compliance lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
Frequently Asked Questions
Generally, no. However, you may need one if you are considering undertaking a business.
Generally, when selling products or services, it is always a good idea to insure yourself or your business.
No matter where you are selling, or the size of your business, so long as your product is a good or a service, you must comply with the Australian Consumer Law (ACL). If you are selling food, you must company with the relevant food standards, and if you are selling goods by measurement, then you must comply with the Trade Measurement Laws.
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