ACCC takes Amazon to court over children’s backpacks

It is the first federal lawsuit the ACCC has brought against an online marketplace for alleged failure to comply with mandatory product safety standards.

Button batteries can cause serious injury or death if swallowed, while they also pose a choking hazard to young children, the ACCC said.

Batteries placed in ears and nose can also cause damage.

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

The ACCC alleges that Amazon AU possessed or controlled the backpacks at Australian fulfillment centers between June 22, 2022 and November 1, 2022, and that required warning labels were missing from the products or outer plastic packaging, in violation of the Australian Consumer Law.

The ACCC alleges that Australian consumers purchased 41 backpacks through Amazon’s website during the relevant period, and that 267 backpacks were stocked in Amazon’s Australian fulfillment centers as of November 1, 2022.

The ACCC further alleges that Amazon AU had possession and control of the backpacks as part of its Fulfillment by Amazon services, which include receiving, storing, picking, packing and shipping items for third-party sellers and handling customer service and returns.

“We are considering the matter brought by the ACCC,” an Amazon AU spokesperson said in response.

“Amazon is proud to be a co-founder of the ACCC’s Online Product Safety Pledge, and we remain focused on providing the best experience for our Australian customers.

“This includes continuing to work hard to ensure that every product available in our store is safe and complies with our policies and applicable regulations.”

According to the law, a person “shall not possess or control, in or for the purpose of trade or commerce, any goods where the supply of those goods is prohibited, including because they do not comply with the mandatory warning requirements for button batteries”.

The watchdog states that this also applies to online marketplaces.

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

“Many Australian consumers now shop on online marketplaces, which is why it is important that consumers have confidence in digital marketplaces, and that the ACCC takes this action, the first of its kind before the Federal Court,” said ACCC Deputy Chair Catriona Lowe.

Button batteries pose a serious danger to young children. If swallowed or inserted, they can cause severe internal burns and injuries, and in some cases death.

“These mandatory warnings are there to protect children and companies must implement these warnings appropriately.”