ACCC takes Amazon to court over children's backpacks

The consumer watchdog is taking the world's biggest retailer to court over accusations it failed to comply with mandatory warning standards.

The Australian Competition and Consumer Commission is alleging in federal court that Amazon AU had children's backpacks in its possession or control for sale on its online marketplace that failed to comply with mandatory button battery warning requirements.

It's the first federal court case the ACCC has brought against an online marketplace over alleged non-compliance with mandatory product safety standards.

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When swallowed, button batteries can lead to serious injuries or death, while they also pose a choking hazard to young children, the ACCC said.

Batteries inserted into ears and noses can also cause harm.

In a release, the ACCC specified the Unicorn Toddler Backpacks, designed for children and with a detachable light-up unicorn plush toy containing button batteries, as the source of the new case.

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The ACCC alleges Amazon AU had possession or control of the backpacks in Australian fulfilment centres between June 22, 2022, 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 Australian consumers bought 41 backpacks through the Amazon website, and 267 backpacks were held in Amazon's Australian fulfilment centres as of November 1 2022.

The ACCC further 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.

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"We are considering the case filed by the ACCC," an Amazon AU spokesperson said in response.

"Amazon is proud to be a founding signatory of the ACCC's Online Product Safety Pledge, and we remain focused on providing the best experience for our Australian customers.

"That includes continuing to work hard to ensure every product available in our store is safe and compliant with our policies and applicable regulations."

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By law, the ACCC said, 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 watchdog contends this also applies to online marketplaces.

The ACCC is seeking declarations, penalties, costs, and other orders.

"Many Australian consumers now shop on online marketplaces. 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," ACCC deputy chair Catriona Lowe said.

"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."