The ACCC alleges Kmart Australia sold millions of nail glue products without adequate burn warnings and supplied children’s watches and tracking devices that failed to meet mandatory button battery safety standards.

Kmart Australia is facing Federal Court action over the allegations, which the ACCC say breach Australian Consumer Law.

The proceedings, announced on 15 October, concern Kmart’s OXX cosmetic nail glue, Anko digital and analogue watches, and Anko Smart Tags, which are GPS tracking devices.

The ACCC is seeking penalties, declarations, costs and other orders against the Wesfarmers-owned Kmart.

The regulator alleges Kmart sold millions of units of nail glue without warning consumers that contact between the adhesive and fabric could cause burns to skin. The glue was sold individually and in packs of false nails.

Between August 2017 and December 2024, consumers reported burn injuries associated with the products, including cases requiring medical treatment, hospitalisation and skin grafts. Some customers also reported fabric smoking, melting or burning when it came into contact with the glue.

The ACCC alleges Kmart was aware of the safety risk through consumer complaints but failed to provide an adequate warning until December 2024, when a warning about burns associated with fabric contact was added.

ACCC deputy chair Catriona Lowe said the alleged failure to warn consumers exposed them to an ongoing risk of serious injury.

The regulator also alleges Kmart failed to submit mandatory reports of serious injuries to the relevant Commonwealth minister as required under Australian consumer law.

Images of one of the children’s digital watches. Image: ACCC

The proceedings also concern button battery safety in Anko watches.

The ACCC alleges Kmart failed to conduct mandatory testing before supplying two models of children’s digital watches and seven models of analogue watches.

The regulator estimates about 64,000 button-battery-powered watches were sold between June 2022 and November 2024 without the required testing to demonstrate compliance with safety standards, including requirements designed to prevent young children from opening battery compartments.

Button batteries can cause severe or fatal injuries if swallowed or inserted into the body. Australia’s mandatory button battery standards, which took effect in June 2022, include requirements for secure battery compartments, child-resistant packaging and appropriate safety information.

The ACCC further alleges Kmart supplied more than 800 Anko Smart Tags that did not comply with mandatory button battery information requirements.

Although the products carried some safety warnings, the regulator alleges they did not include all information required under the standards. Kmart recalled the Smart Tags in 2024 following engagement with the ACCC.

A Kmart spokesperson said the company was disappointed by the decision to pursue legal action over historical matters it considered addressed.

The spokesperson said Kmart regretted any injuries associated with the nail glue, maintained that its labelling and warnings were appropriate to prevent misuse, and had submitted mandatory injury reports to the ACCC.

Kmart said it had cooperated with the regulator and continued to strengthen its product safety and compliance processes. The company declined to comment further because the matter is before the court.

A hearing date has not yet been set.