The Australian Competition and Consumer Commission has initiated legal proceedings against e-commerce behemoth Amazon over allegations of the safety of unicorn backpacks sold on its platform.
These backpacks, the commission said, failed to comply with the button battery warning requirements set out in Australian Consumer Law.
Some 41 backpacks were said to have been purchased by consumers, and a further 267 were allegedly held in Amazon Australia fulfilment centres as of November 1, 2022.
This announcement marks the first time that the ACCC has commenced Federal Court action against an online marketplace over allegations of non-compliance with product safety standards.
“Many Australian consumers now shop on online marketplaces. That’s why it is important that consumers have confidence and trust in digital markets, and for the ACCC to take this action, the first of its kind to come before the Federal Court,” deputy chair Catriona Lowe said.
The case will look at whether Amazon Australia had the Unicorn Toddler Backpacks in its possession between June 22, 2022, and November 1, 2022, and whether they were sold to consumers. At the same time, it will review whether the batteries in question complied with Australian Consumer Law.
“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 added. “These mandatory warnings are there to help keep children safe, and businesses must get them right.”
The commission called the fight against what it describes as a rise in unsafe consumer goods a “priority area”.
“Under the Australian Consumer Law, a person must not, in or for the purposes of trade or commerce, possess or have control of goods where the supply of those goods is prohibited, including because they do not comply with mandatory button battery warning requirements,” the commission added.
The case aims to apply product safety laws to online marketplaces and their fulfilment centres, which the ACCC says should be treated the same as traditional suppliers under Australian Consumer Law.
