The current case concerns the product "Unicorn Toddler Backpacks", which are designed with a detachable plush toy powered by button cell batteries. According to the ACCC’s statement of claim, the backpacks lacked the warning texts required by Australian law.
The products were stored in Amazon’s Australian distribution center between June and November 2022. During the period, 41 units were sold to consumers through the company’s platform, while an additional 267 units remained in stock at the end of the period. All are said to have lacked the required warning labels on both the product and the packaging.
This is the first time the ACCC has taken an e-commerce marketplace to federal court for failing to comply with product safety laws. The authority argues that Amazon, due to its handling of the goods in its own logistics centers, is subject to the same obligations under Australian consumer law as other suppliers.
Button cell batteries pose a serious hazard to young children. If swallowed or inserted into the body, they can cause internal burns and, in some cases, death. These mandatory warnings are there to keep children safe and companies must do the right thing, says ACCC Deputy Chair Catriona Lowe.
Lowe states that the case will be a guiding test case for how the law should be applied to platform actors, and informs about the financial consequences of the violation:
The maximum penalty for violating the relevant provisions is $50 million for companies.
Amazon has, since the deficiencies were discovered, removed the advertisements and contacted customers who purchased the backpacks to inform them of the safety risks. In a statement, the company said it is now reviewing the authority's case.
We continue to focus on providing the best experience for our Australian customers. That includes working to ensure that every product available in our store is safe and complies with our policies and applicable regulations, said an Amazon spokesperson.