Key products within two of Kmart’s home brands, Anko and OXX Cosmetics, are at the centre of Federal Court action by the ACCC over alleged product safety and compliance failures.
The consumer watchdog alleges Kmart Australia breached the Australian Consumer Law across three home-brand lines: OXX Cosmetics fingernail glue, Anko children’s and adults’ watches, and Anko Smart Tags GPS trackers. It is seeking penalties, declarations, costs and other orders.
“Kmart sold millions of units of some of these products, each posing a potential danger to consumers, including young children,” ACCC deputy chair Catriona Lowe said.
“We will allege Kmart’s conduct showed serious compliance failures which exposed the public to a significant risk of product safety harm.”
The ACCC alleges Kmart made false and misleading representations by selling OXX nail glue, both on its own and bundled with packs of false nails, without warning that it could burn skin on contact with fabric such as clothing, tissues or wipes. Other safety warnings appeared on the packaging and bottle.
According to the regulator, consumers reported burn injuries to Kmart between August 2017 and December 2024, including burns that required medical treatment and, in some cases, hospitalisation and skin grafts.
Some customers also reported chemical reactions or smoke while using the glue. Kmart added a warning about the risk of burns from contact with fabric in December 2024.
The ACCC said Kmart was aware of the risk through those consumer reports, with Lowe describing the alleged failure to warn as “an incredibly serious matter”.
A spokesperson for the national retailer said that while the incidents regarding the nail glues are historical, the company regrets any injury associated with these products and apologises to anyone affected.
“Kmart remains of the view the labelling and warnings were appropriate to prevent misuse,” the spokesperson said. “We take our reporting obligations seriously and submitted mandatory injury reports about these products to the ACCC.”
On the accessories front, the ACCC alleges Kmart failed to test two models of an Anko kids’ digital watch and seven analogue watch models before supply, as mandatory button battery standards require. It alleges Kmart sold about 64,000 non-compliant watches between June 2022 and November 2024.
“These watches contained button batteries, but Kmart did not test them prior to supply to show that young children could not open the battery compartments,” Lowe said. “This is despite many of the watches being specifically designed for children.”
The regulator also alleges Kmart supplied more than 800 Anko Smart Tags that did not carry all the warnings required under the button battery information standard. Kmart recalled the Smart Tags in 2024 following ACCC engagement.
The Kmart spokesperson said the watch button battery matters are also historical and relate to compliance processes in 2023, while adding that the smart tag matter was self-identified by Kmart in 2024 and a voluntary recall was conducted.
“No injuries were reported for any of these products. We have continued to strengthen our product safety and compliance processes,” the spokesperson said.
Australia’s mandatory button battery standards came into effect in June 2022. They require child-safe packaging, secure battery compartments and warning information on packaging and batteries, and businesses must test products containing button batteries before supplying them.
The Kmart spokesperson said the safety of its products as well as its customers' trust are its highest priorities.
“We have cooperated with the ACCC throughout its investigation and are disappointed at its decision to take action on historical matters that Kmart has addressed.”
Kmart operates more than 320 stores across Australia and New Zealand, as well as an online business. Anko, its home brand, spans appliances, clothing and toys.