AMZ123 has learned that recently, according to foreign media reports, the Australian Competition and Consumer Commission (ACCC) filed a lawsuit in the Federal Court, accusing Amazon Australia (Amazon AU) of suspected violations of mandatory product safety regulations. This is also the first time that Australian regulatory authorities have initiated a federal court lawsuit against an online e-commerce platform for suspected violations of mandatory product safety standards.

According to the ACCC's allegations, the product involved is "Unicorn Toddler Backpacks". This product is designed for children and comes with a detachable glowing unicorn plush toy, which contains button batteries inside. The regulator believes that these products and their external plastic packaging do not have the required button battery safety warning labels attached, so they do not meet the requirements of Australian mandatory safety standards.

The ACCC stated that the relevant backpacks were stored in Amazon Australia's fulfillment center from June 22, 2022 to November 1, 2022. During this period, the products themselves or their outer packaging lacked the required safety warning labels. The regulator said that a total of 41 backpacks were sold to Australian consumers through Amazon.com.au, and as of November 1, 2022, there were still 267 backpacks stored in Amazon Australia's fulfillment center.

The ACCC pointed out that Amazon has actual control over these goods through the "Fulfillment by Amazon (FBA)" service. This service covers receiving, warehousing, picking, packaging, delivery, as well as customer service and return processing. Therefore, the regulator believes that Amazon is not only the platform operator but also should bear the same legal responsibilities as other product suppliers.

According to the Australian Consumer Law, businesses are not allowed to hold or control prohibited goods in commercial activities, including products that do not meet the mandatory warning requirements for button batteries. The ACCC advocates that this provision also applies to online market platforms.

The ACCC stated that more and more Australian consumers are shopping through online markets, so consumers must be able to trust and have confidence in the digital market. Once button batteries are swallowed or inserted into the body by children, they can cause serious internal burns and other injuries, and in extreme cases, even death. The purpose of setting mandatory warning labels is precisely to protect children's safety, and businesses must strictly comply with relevant regulations.

ABC News reported that button batteries have become an important issue in the field of child safety in recent years. Especially children aged 5 and under are more likely to put small items in their mouths, noses or ears, thereby increasing the risk of accidents.

The Australian government officially implemented mandatory safety and information standards for button batteries in 2022, requiring related products to be equipped with child-resistant battery compartments, pass compliance tests, provide safety warnings, and use child-resistant packaging.

The ACCC stated that this case not only involves specific product safety issues but will also become an important case to test how the Australian Consumer Law applies to online market platforms. The regulator revealed that it will seek the court to make illegal rulings, impose fines, legal costs and other related orders. According to current laws, the maximum fine that businesses can face for violating relevant regulations can reach 50 million Australian dollars.

In response to the lawsuit, Amazon said that the company is studying the case materials submitted by the ACCC.

Amazon stated that it has established relevant policies and control measures to ensure that the products sold on the platform meet safety and compliance requirements. As one of the founding signatories of the Australian Product Safety Pledge, Amazon will continue to be committed to providing Australian consumers with a safe and reliable shopping experience and strive to ensure that the products on the platform meet company policies and applicable regulations.

It is understood that after discovering the problem, Amazon has removed the relevant product pages and actively contacted consumers who purchased the product to provide them with safety warning information.

In addition to the button battery issue, the ACCC has recently strengthened its supervision of dangerous goods sold on online platforms. The regulator revealed that it has issued removal notices to Amazon, eBay, Kogan and Fruugo, requiring them to deal with some toys and game products containing high-strength small magnets. The ACCC pointed out that once such products are accidentally swallowed by children, multiple magnets may attract each other in the digestive tract, causing serious or even fatal internal injuries.

After the related investigation was launched, some of the products involved were recalled. Amazon, eBay, Kogan and Fruugo all promised to take measures to prevent similar dangerous products from being re-listed and send safety reminders to affected consumers.

Author: Summer/AMZ123

Seller's Home Review

Australian sellers on Amazon need to be vigilant: Australia's safety and compliance review of children's products is tightening, FBA shares responsibility, and simply removing from the shelves is not enough to avoid liability. Immediately self-inspect the labels and certifications of all products containing button batteries to ensure full compliance with local mandatory standards and avoid the risk of high fines.

Source: Amazon News