Australian watchdog sues Amazon unit over children’s backpack safety

SYDNEY - Australia’s competition watchdog said on May 29 that it has initiated legal action against Amazon’s local unit, alleging breaches of product safety labelling laws related to children’s backpacks.

According to the Australian Competition and Consumer Commission (ACCC), the company is accused of supplying children’s “Unicorn Toddler Backpacks” that were not compliant with mandatory safety standards for button batteries.

The ACCC alleges that the backpacks were held in Amazon Commercial Services’ fulfilment centres in Australia between June 22 and November 1, 2022, without the required warning labels either on the products themselves or on their outer packaging.

The watchdog alleges that 41 of the backpacks were purchased by Australian consumers through “amazon.com.au” during the relevant period, with a further 267 units held in Amazon’s Australian fulfilment centres, as of 1 November 2022.

Amazon spokesperson said in a statement that it is “considering the case filed by the ACCC”, and added that policies and controls are in place to make sure the listed products meet compliance and safety measures.

“Unicorn Toddler Backpacks” were designed for children and included a detachable light-up unicorn plush toy containing button batteries, ACCC said in its statement.

The ACCC argues that by having possession and control of the goods through this service, Amazon AU is subject to the same obligations under Australian Consumer Law as other suppliers.

“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,” ACCC deputy chair Catriona Lowe said.

The regulator is seeking declarations, penalties, costs and other orders from the Federal Court.

The ACCC said this was its first Federal Court case against an online marketplace alleging breaches of mandatory product safety laws. REUTERS