Amazon sued by ACCC over alleged non-compliant safety warnings on kids’ backpacks

Amazon is being sued by the ACCC over allegations it sold children’s backpacks that failed to comply with mandatory button battery warning requirements.

The consumer watchdog said on Friday it had launched Federal Court proceedings against Amazon, alleging unicorn children’s backpacks in Amazon’s “possession or control for sale on its online marketplace” did not comply with the warning requirements.

“The (backpacks) were designed for children and included a detachable light-up unicorn plush toy containing button batteries,” the ACCC statement read.

The watchdog alleges 41 backpacks were purchased by Australian consumers through Amazon’s website, and that 267 backpacks were held in 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,” it said.

“Uner 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 requirements.

“The ACCC’s case is that this applies to situations where online marketplaces have possession or control goods, in the same way it applies to other suppliers of goods.”

The ACCC says it is the first Federal Court case brought by the watchdog against an online marketplace alleging non-compliance with mandatory product safety standards.

It is seeking declarations, penalties, costs, and other orders.

ACCC deputy chair Catriona Lowe said as many Australians now shopped in online marketplaces, it was important for them to have confidence and trust in digital markets.

“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,” Ms Lowe said.

“These mandatory warnings are there to help keep children safe and businesses must get them right.”

An Amazon spokesman said the organisation was “considering the case”.

“Amazon is proud to be a founding signatory of the ACCC’s online safety pledge, and we remain focused on providing the best experience for our Australian customers,” the spokesman 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.”

The ACCC warns children of up to five years of age are at greatest risk from button batteries, due to having a more narrow oesophagus and their tendency to place small objects in their ears, mouths, and noses.