The consumer watchdog is suing Amazon alleging it sold kids unicorn backpacks on its online marketplace which failed to comply with mandatory button battery safety warnings.
It is the first Federal Court case taken by the ACCC against an online marketplace over alleged non-compliance with product safety standards.
Button batteries pose a serious health risk for children if they are swallowed or inserted and can cause life-threatening injuries or death.
Amazon sold a product called Unicorn Toddler Backpacks, which were marketed towards children and featured a “detachable light-up unicorn plush toy containing button batteries,” the ACCC said.
According to the lawsuit, Amazon had backpacks in Australian fulfilment centres between June 22 and November 1, 2022 but they failed to include warning labels, allegedly breaking Australian Consumer law.
Forty-one backpacks were purchased by Australian customers through Amazon’s Australian website. (Supplied: ACCC)
Forty-one backpacks were purchased by Australian customers through Amazon’s Australian website and 267 backpacks were in their fulfilment centres at November 1, 2022.
“Many Australian consumers now shop on online marketplaces. That’s why it is important that consumers have confidence and trust in digital markets, and for the ACCC to take this action, the first of its kind to come before the Federal Court,” ACCC deputy chair Catriona Lowe said.
“Button batteries pose a serious hazard for young children. If swallowed or inserted, they can cause severe internal burns and injury, and in some cases death. These mandatory warnings are there to help keep children safe and businesses must get them right.”
The Unicorn Toddler Backpacks included a detachable light-up unicorn plush toy. (Supplied: ACCC)
Doctors, children’s safety advocates and affected families have sounded the alarm about the risk posed by button batteries in recent years.
Children who are five and younger face the greatest risk and are more likely to put small objects into mouths, ears and noses.
Amazon said it was considering the case filed by the ACCC.
This is the ACCC’s first Federal Court case against an online marketplace alleging non-compliance with safety standards. (Supplied: ACCC)
“We remain focused on providing the best experience for our Australian customers,” an Amazon spokesperson said in a statement.
“That includes continuing to work hard to ensure every product available in our store is safe and compliant with our policies and applicable regulations.”
The Australian government introduced mandatory safety and information standards for button batteries in 2022.
They included child-resistant compartments on products with replaceable button batteries, compliance testing, warnings and child-proof packaging.
There has been a rise in cases globally of children swallowing button batteries which has been linked to increased availability of 20 millimetre batteries, especially lithium-ion batteries which retain their charge better than others.
As a result, leading manufacturer Energizer developed a number of safety measures including child-proof packaging, warnings, a bitter coating and blue dye to detect ingestions.
Last year, consumer group Choice tested five major online stores — Shein, AliExpress, eBay, Amazon and Kogan — for compliance with button battery safety standards with “highly concerning” findings.
Of the the 24 items bought as part of the test, 17 failed to meet mandatory button battery safety standards.