Consumer watchdog alleges Amazon breached button battery safety laws
Australia’s consumer watchdog has launched legal action against Amazon Australia, alleging the online retail giant failed to meet mandatory product safety requirements for children’s products containing button batteries.
The case, filed by the Australian Competition and Consumer Commission in the Federal Court, centres on children’s backpacks sold through Amazon’s Australian marketplace that allegedly did not carry the required safety warnings.
It marks the first time the ACCC has taken an online marketplace operator to court over alleged breaches of mandatory product safety standards in Australia.
Backpack warnings allegedly missing
The ACCC claims Amazon AU had possession or control of children’s backpacks that failed to comply with Australia’s mandatory button battery warning rules.
At the centre of the proceedings are Unicorn Toddler Backpacks fitted with a detachable illuminated unicorn plush toy powered by button batteries. According to the regulator, the products and their plastic outer packaging allegedly lacked legally required warning labels.
The watchdog alleges the backpacks were stored in Amazon fulfilment centres in Australia between 22 June and 1 November 2022.
During that period, 41 backpacks were reportedly sold to Australian consumers through the Amazon website, while a further 267 units were allegedly being stored in Amazon warehouses as of 1 November 2022.
Serious risks linked to button batteries
Button batteries have been the focus of major safety campaigns across Australia in recent years due to the severe risks they pose to young children.
The ACCC said swallowing button batteries can cause catastrophic internal injuries, severe burns and, in some cases, death. The batteries can also become lodged in children’s ears or noses, leading to significant harm.
Australia introduced stricter button battery safety standards in 2022, making warning labels and secure battery compartments mandatory for a wide range of consumer products.
ACCC says online marketplaces must comply
The ACCC alleges Amazon AU exercised possession and control over the products through its “Fulfilment by Amazon” service, which includes receiving, warehousing, packing, shipping and managing customer returns for third-party sellers.
Under Australian Consumer Law, businesses are prohibited from possessing or controlling goods for trade or commerce if those products fail to comply with mandatory safety standards.
The regulator argues these obligations also extend to online marketplace operators.
ACCC Deputy Chair Catriona Lowe said the legal action was important as more Australians turn to online shopping platforms.
“Many Australian consumers now shop on online marketplaces,” Lowe said.
“That’s why it is important that consumers have confidence and trust in digital markets.”
She also stressed the dangers posed by button batteries, particularly in products intended for children.
“These mandatory warnings are there to help keep children safe and businesses must get them right,” she said.
Amazon responds to allegations
In a statement, Amazon AU said it was reviewing the ACCC’s case.
The company said it remained committed to customer safety and regulatory compliance in Australia.
Amazon also noted it was a founding signatory to the ACCC’s Online Product Safety Pledge, an initiative aimed at improving the safety of products sold through digital marketplaces.
“We remain focused on providing the best experience for our Australian customers,” an Amazon AU spokesperson said.
“That includes continuing to work hard to ensure every product available in our store is safe and compliant with our policies and applicable regulations.”
ACCC seeking penalties and court orders
The ACCC is seeking declarations, financial penalties, legal costs and other court-enforced orders against Amazon AU.
The case is likely to be closely watched across Australia’s retail and e-commerce sectors, particularly as regulators increase scrutiny of online marketplaces and product safety compliance.
The proceedings also reinforce the growing expectations on large digital platforms to ensure products sold through their networks meet Australian consumer protection laws.
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