Kmart will face the Federal Court over ACCC allegations that it sold unsafe products.
The consumer watchdog alleges Kmart sold nail glue without risk warnings, and products without proper button battery safety testing, including children’s watches.
In a statement to TDA, Kmart said it is “disappointed at [the ACCC’s] decision to take action on historical matters that Kmart has addressed”.
Here’s what you need to know.
Background
The ACCC is Australia’s consumer watchdog.
It monitors and enforces how businesses comply with competition and consumer laws, including product safety.
One area the ACCC investigates is the mandatory standards for button batteries.
These are flat, single-cell batteries found in products such as watches, toys, and keys.
They must be secured and include safety warnings due to the high risk of danger if accidentally consumed.
Allegations
The ACCC alleges Kmart did not adequately warn consumers over the safety risks of several varieties of nail glue between 2017 and 2024.
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During this time, more than 50 consumers reported skin burns caused when the glue came into contact with fabric.
The ACCC said some of these injuries required hospitalisation and skin grafts.
People also complained about the nail glue burning, smoking, steaming or melting after coming into contact with fabric.
The consumer watchdog also alleges that Kmart did not properly test several watch models to ensure they comply with button battery standards.
This allegation extends to smart tags, which the ACCC says did not have sufficient warning labels.
The watches were allegedly sold from 2022 to 2024 without proper testing, while the tags were sold in December 2023 before being recalled in 2024 after ACCC engagement.
ACCC Deputy Chair Catriona Lowe said: “We expect all businesses, especially large retailers like Kmart, to have consumer safety front of mind.”
Response
In a statement to TDA, a Kmart spokesperson called the incidents “historic matters,” noting “no injuries were reported” over the smart tags and watches.
“While the incidents with nail glues are also historical, we regret any injury associated with these products and apologise to anyone affected,” they said.
The spokesperson added that Kmart has “cooperated with the ACCC throughout its investigation and are disappointed at its decision to take action on historical matters that Kmart has addressed.”
