An appeal made by Australian retailer City Beach over a $14 million fine for selling non-compliant battery products has been dismissed by the Federal Court.
The proceedings were initially launched by the ACCC last year, with the Federal Court handing down its judgement in December 2025.
Fewstone Pty Ltd – the company behind City Beach – was found to have been selling products, many of which were marketed to or intended for children, including toys, digital notepads, keyrings, lights and light-up Jibbitz accessories for Crocs shoes.
Button batteries are dangerous and pose a significant risk to young children if swallowed or inserted. Three children have died in button battery incidents in Australia, according to the ACCC.
“The Court has today confirmed that a significant penalty is appropriate in this case to deter City Beach and other traders from failing to comply with the mandatory button battery standards,” ACCC commissioner Luke Woodward said.
“This highlights the importance of businesses implementing systems to ensure they are complying with the button battery standards, which are intended to protect the safety of children.”
The trial judge found that between June 2022 and October 2024, City Beach sold more than 60 product types containing button batteries (on over 54,000 occasions) that did not comply with the button battery safety and/or information standards, and imposed a penalty of $14 million.
City Beach had admitted this conduct breached the Australian Consumer Law. The Full Federal Court has now dismissed City Beach’s appeal that the $14 million penalty was manifestly excessive.
According to the court, “the sale of a very dangerous but very cheap product contravening a safety standard may be a paradigm example of a circumstance where the appropriate penalty may bear no relevant relationship to the profit… because of the heightened need to deter corporations from ever selling such a product, or from failing to have systems and processes in place...”
As a result of today’s decision, the $14 million penalty order made in December, which was the first of its kind for breaches of the mandatory button battery standards, will remain in effect.
“The ACCC will continue to take strong enforcement action where appropriate against businesses which fail to comply with the mandatory button battery safety standards,” Woodward said.
“Businesses are on notice that they must take button battery safety seriously and implement effective systems to ensure compliance with the mandatory standards, or they will risk substantial penalties for non-compliance.”
City Beach is a national retailer primarily offering surf and skate consumer goods including clothing, accessories and novelty items. City Beach operates an online store and a national network of 66 retail stores.
City Beach is conducting a voluntary recall of the products. Consumers can return recalled products to City Beach for a full refund. To check if a product has been recalled, visit the ACCC Product Safety website or contact City Beach.