The Australian Competition and Consumer Commission (ACCC) has commenced Federal Court proceedings against Amazon Commercial Services Pty Ltd (Amazon AU), alleging the company held children’s backpacks in its Australian fulfilment centres without the mandatory button battery warning labels required under Australian Consumer Law (ACL). Filed on 29 May 2026 (case NSD905/2026), this is the first time the ACCC has taken an online marketplace to the Federal Court over alleged non-compliance with mandatory product safety standards.
What the ACCC Alleges
The product at the centre of the case is the “Unicorn Toddler Backpack” — a children’s backpack featuring a detachable light-up unicorn plush toy powered by internal button batteries. The ACCC alleges that Amazon AU had possession or control of these backpacks in its Australian fulfilment centres between 22 June 2022 and 1 November 2022, and that the required button battery warning labels were missing from either the products themselves or their outer plastic packaging.
During that period, 41 backpacks were purchased by Australian consumers through amazon.com.au, while a further 267 units remained in stock in Amazon’s fulfilment centres as of 1 November 2022.
Amazon AU’s involvement stems from its Fulfilment by Amazon (FBA) service, through which it receives, stores, picks, packs and ships products on behalf of third-party sellers. The ACCC’s position is that by virtue of having physical possession and control of the goods through this service, Amazon AU bears the same legal obligations under the ACL as any other supplier — including compliance with mandatory product safety standards.
The ACCC is seeking declarations, financial penalties, and costs from the Federal Court. Find ABC’s News article on it through the following link: ACCC sues Amazon over alleged non-compliance with button battery warnings in kids backpacks – ABC News
Why Button Batteries Are Regulated So Strictly
Button batteries are small, flat, disc-shaped batteries found in a wide range of everyday consumer products — toys, remote controls, key fobs, greeting cards, and light-up accessories like the unicorn toy attached to the backpack in this case. Their small size makes them particularly dangerous for young children, who may swallow them or insert them into body cavities.
When lodged against bodily tissue, a button battery can generate an electrical current that reacts with bodily fluids to produce caustic substances, causing severe internal burns within as little as two hours. In some cases, ingestion has been fatal. In Australia, three children have died and at least 44 have been severely injured in button battery incidents, with more than one child a month seriously hurt as a result of ingestion or insertion.
Australia's Mandatory Button Battery Standards
The Australian Government legislated mandatory safety and information standards for button batteries and consumer goods containing them in December 2020, following an 18-month transition period. These standards became fully mandatory on 22 June 2022 — the same date the ACCC alleges Amazon’s non-compliant backpacks entered its fulfilment network.
The standards apply to all suppliers in the chain — manufacturers, importers, wholesalers, retailers, and, as this case makes clear, online marketplace operators with possession or control of goods. Key requirements include:
- Secure battery compartments that young children cannot open, with screws (if used) remaining attached to the cover
- Physical containment — button batteries must not be released during reasonably foreseeable use or misuse
- Compliance testing to demonstrate that both safety and containment requirements have been met
- Mandatory warning labels on the product and/or packaging, including advice to seek immediate medical attention if a battery is suspected to have been swallowed or inserted into any part of the body — labels must meet the size, legibility, and durability requirements of ISO 3864-2:2016
A product that does not comply with these standards is prohibited from supply under the ACL. Supplying, or possessing or controlling non-compliant goods for the purpose of supply, constitutes a contravention of the law.
The Broader Enforcement Context
This case is not an isolated event. The ACCC’s 2026/2027 Compliance and Enforcement priorities explicitly include unsafe consumer goods in digital markets and product safety issues for young children, with button battery compliance specifically called out as a focus area. ACCC Deputy Chair Catriona Lowe has stated that online marketplaces are not exempt from strict safety compliance, and that the regulator will pursue digital platforms that put young lives at risk.
It is also worth noting that Amazon AU is one of three signatories to the Australian Product Safety Pledge — a voluntary initiative under which online marketplaces commit to a set of product safety actions and report annually on their performance. The ACCC’s decision to pursue Federal Court proceedings despite this voluntary commitment underscores the regulator’s view that voluntary measures are not a substitute for legal compliance.
What This Means for Product Manufacturers and Suppliers
Regardless of where a product is sold — through a physical retail channel or an online marketplace — Australian mandatory product safety standards apply at every point in the supply chain. This case serves as a clear reminder that:
- Compliance with button battery labelling requirements is non-negotiable for any consumer product containing button batteries sold into the Australian market
- Online marketplace operators that store or control goods through fulfilment services may be treated as suppliers under the ACL
- Non-compliant products can expose every party in the supply chain — including the platform operator — to enforcement action and significant financial penalties
How C-PRAV Can Support You
C-PRAV supports manufacturers and suppliers in understanding and meeting Australia’s mandatory product safety standards, including the button battery safety and information standards. Our team can assist with compliance gap assessments, product testing and labelling reviews, and end-to-end RCM certification services to ensure your products meet all requirements before they enter the Australian market.