Overview
- The ACCC filed Federal Court proceedings on Friday alleging Amazon sold "Unicorn Toddler Backpacks" that lacked mandatory button-battery warnings and were held in Amazon’s Australian fulfilment centres.
- The regulator says 41 backpacks were purchased by Australian customers and 267 units were stored in fulfilment centres between June 22 and November 1, 2022, without the required warnings on the product or outer packaging.
- ACCC deputy chair Catriona Lowe warned that button batteries can cause severe internal burns or death if swallowed by young children and said the warnings exist to help keep kids safe.
- The ACCC argues that Amazon had possession and control of the goods through its Fulfilment by Amazon service and is therefore subject to supplier obligations; it seeks declarations, penalties, costs and other court orders.
- Amazon said it is considering the action and that it works to keep products safe and compliant; the case, the ACCC’s first Federal Court suit against an online marketplace over safety rules, could set a legal precedent for marketplace liability and affect how fulfilment models are regulated.