The ACCC has launched Federal Court action against Amazon Australia over allegations kids’ backpacks sold through its local marketplace failed to meet mandatory button battery warning requirements.

The case is significant because it is the first Federal Court proceeding brought by the ACCC against an online marketplace over alleged non-compliance with mandatory product safety standards.

The regulator alleges Amazon AU had possession or control of ‘Unicorn Toddler Backpacks’ in its Australian fulfilment centres between 22 June and 1 November 2022. The backpacks were designed for children and included a detachable light-up unicorn plush toy containing button batteries.

Under Australian button battery safety rules, products containing button batteries must carry prescribed warnings on the goods, packaging, or accompanying instructions, depending on how they are supplied.

The ACCC claims the backpacks, or their plastic outer packaging, did not include the required warnings, in breach of the Australian Consumer Law.

According to the ACCC’s concise statement, the product was listed by a third-party seller known as Brokbridge on 29 October 2021 and enrolled in Amazon’s Fulfilment by Amazon service.

Under that service, Amazon receives, stores, picks, packs and ships goods for third-party sellers, while also handling customer service and returns.

The ACCC alleges 41 backpacks were purchased by Australian consumers during the relevant period, and that 267 units remained in Amazon’s fulfilment centres as of 1 November 2022.

The regulator says Amazon AU last shipped one of the backpacks to a consumer on 22 July 2022, despite the ACCC notifying Amazon and the listing being removed on 12 July 2022. The listing was also briefly active again on 20 October 2022 before being removed.

ACCC Deputy Chair Catriona Lowe said online marketplaces must ensure consumers can trust products sold through digital platforms.

“Button batteries pose a serious hazard for young children. If swallowed or inserted, they can cause severe internal burns and injury, and in some cases death,” Lowe said.

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