Australia Files Case Against Amazon Over Children’s Backpack Safety Issue
Synopsis
Australia’s competition watchdog has launched legal action against Amazon’s local unit over alleged breaches of product safety laws involving children’s backpacks containing button batteries. The ACCC claims “Unicorn Toddler Backpacks” sold through amazon.com.au lacked mandatory warning labels required under Australian safety standards. According to the regulator, 41 units were sold to Australian consumers while hundreds more were held in Amazon fulfilment centres. The ACCC said this is its first Federal Court case against an online marketplace involving mandatory product safety laws and is seeking penalties and other court orders against Amazon.
Australia’s competition regulator has taken legal action against Amazon’s local arm for breaches of product safety labelling laws related to button batteries in children’s backpacks.
Key Highlights
- Amazon gets sued in Australia
- Australia's Competition and Consumer Commission (ACCC) has opened legal proceedings
- Case relates to Unicorn Toddler Backpacks sold on Amazon
- 41 units sold to Australian consumers
- This is the first Federal Court case launched by the ACCC against an online marketplace over consumer goods safety legislation.
Amazon Sued by Australia
Australia's competition watchdog said on Friday it had initiated court action against Amazon's local unit, alleging the online retailer breached product safety labelling laws in relation to children's backpacks. The firm sold Unicorn Toddler Backpacks that failed to meet minimum safety standards for button batteries, the Australian Competition and Consumer Commission said.
The ACCC claimed the backpacks were held at Amazon Commercial Services fulfilment centres across Australia between June 22 and November 1, 2022, without necessary warning labels on the stock itself or its outer packaging.
The story behind the purported safety breach and why it matters
The children's backpacks contained removable light-up unicorn stuffed animals with button batteries. Australian consumers purchased 41 of the backpacks via Amazon, according to the ACCC. At the same time, another 267 units were said to be sitting in Amazon's Australian fulfilment centres.
The watchdog contends that Amazon owned and controlled the goods using its fulfilment service and therefore is liable as a supplier under Australian Consumer Law in the same way as other suppliers. Catriona Lowe, the deputy chair of the ACCC said that any button battery in children will cause serious problems because they can be fatal if swallowed or cause organ burns.
ACCC seeks fines and Federal Court orders
The ACCC is seeking declarations, penalties, legal costs and other orders in the Federal Court. The regulator claimed this is the first time it has taken action in the Federal Court against an online marketplace operator for allegedly breaching mandatory product safety laws.
It is the latest in a series of cases forcing online marketplaces and product safety compliance into the spotlight in Australia, as regulators continue to focus on areas around children's products and button battery safety standards.
FAQs
- Why is the Retail Giant Sued in Australia?
Amazon allegedly breached child backpack product safety labelling laws, says the ACCC
- What product is involved?
The ACCC identified the case as “Unicorn Toddler Backpacks” with button batteries
- What safety issue was identified?
They claimed the backpacks did not have legally-required warning labels about button batteries.
- How many backpacks were sold?
And according to the ACCC, 41 units actually went to Australian consumers.
- What is the ACCC seeking?
The regulator has ordered penalties, declarations, costs and other Federal Court orders
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