Australia’s consumer watchdog is taking global online marketplace Amazon to court, alleging that certain kids' backpacks sold on its local website failed to comply with mandatory button battery warning requirements.
This is the first Federal Court case brought by the ACCC against an online marketplace alleging non-compliance with mandatory product safety standards. The ACCC added that this is a priority area, recognising the rise in unsafe consumer goods available across the economy, facilitated by the increasing scale and reach of digital markets.
According to the watchdog, Amazon Commercial Services Pty Ltd (or Amazon AU) listed Unicorn Toddler Backpacks’ that were designed for children and included a detachable light-up unicorn plush toy containing button batteries.
The ACCC alleges Amazon AU had possession or control of the backpacks in Australian fulfilment centres between June 22 and November 1, 2022, and that required warning labels were missing from the products or the plastic outer packaging, which is in contravention of the Australian Consumer Law.
During the relevant period, the ACCC alleges 41 backpacks were purchased by Australian consumers through amazon.com.au, and 267 backpacks were held in Amazon’s Australian fulfilment centres as of November 1, 2022.
The ACCC alleges Amazon AU had possession and control of the backpacks as part of its Fulfilment by Amazon services, which includes receiving, storing, picking, packing and shipping items for third-party sellers and handling customer service and returns.
Under the Australian Consumer Law, a person must not, in or for the purposes of trade or commerce, possess or have control of goods where the supply of those goods is prohibited, including because they do not comply with mandatory button battery warning requirements. The ACCC’s case is that this applies to situations where online marketplaces have possession or control of goods, in the same way it applies to other suppliers of goods.
The ACCC is seeking declarations, penalties, costs and other orders.
“Many Australian consumers now shop on online marketplaces,” ACCC deputy chair Catriona Lowe said. “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.
“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.”