Amazon, eBay, Kogan, Fruugo get ACCC takedown requests for toys and games with small magnets
In the first Federal Court case commenced by the Australian Competition and Consumer Commission (ACCC) to assert that an online marketplace failed to meet mandatory product safety standards, the ACCC initiated proceedings against Amazon Commercial Services Pty Ltd (Amazon AU) in connection with toddlers’ unicorn backpacks.
“Many Australian consumers now shop on online marketplaces,” said Catriona Lowe, ACCC deputy chair, in a media release. “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.”
The ACCC alleged that Amazon AU had possession or control of the children’s backpacks, which included detachable light-up unicorn plush toys with button batteries, from 22 June to 1 November 2022, with 267 backpacks present in Australian fulfilment centres as of 1 November 2022.
The ACCC specified that Amazon AU’s possession and control of such backpacks included receiving, storing, picking, packing, and shipping them for third-party sellers, as well as handling customer service and returns.
According to the ACCC’s media release, within the relevant period, Australian consumers bought 41 backpacks via Amazon AU’s website.
The ACCC asserted that the backpacks or their plastic outer packaging lacked the mandatory button battery warning labels, in contravention of the Australian Consumer Law (ACL).
For goods whose supply is prohibited, including those not complying with mandatory button battery warning requirements, the ACL prohibits their possession or control for trade or commerce purposes.
The ACCC argued that the prohibition should apply to online marketplaces just as it applies to other suppliers of goods. The ACCC’s proceedings are pursuing declarations, penalties, and costs, among other orders.
“Button batteries pose a serious hazard for young children,” Lowe said in the ACCC’s media release. “If swallowed or inserted, they can cause severe internal burns and injury, and in some cases death. These mandatory warnings are there to help keep children safe and businesses must get them right.”
The ACCC also shared that it sent takedown requests to Amazon, eBay, Kogan, and Fruugo in connection with its investigation into magnetic chess, magnetic battle chess, and other prohibited toys and games with possibly deadly, small, high-powered magnets, which are listed on online marketplaces and supplied to Australian consumers.
Kogan, Amazon, and Fruugo provided or offered to provide customer refunds for purchases of the products under investigation.
In its media release, the ACCC acknowledged the recall of some of these products from sale since the initiation of its investigation. The ACCC noted that it pursued further measures to stop sellers from relisting the same or similar products.
Amazon, eBay, Kogan, and Fruugo committed to preventing listings of such products and to reaching out to impacted customers to warn them of the potential dangers.
Lowe called on all online marketplaces to take steps to prevent listings of these products to protect consumers, especially young children.
According to the ACCC, a permanent ban under the ACL covers some separable or loose, small, high-powered magnets due to the danger of injury or death when swallowing them. A mandatory product safety standard also applies to toys with magnets.
“Small high-powered magnets can cause catastrophic, life-threatening internal injuries if swallowed, particularly for young children,” Lowe said in the ACCC’s media release. “Multiple magnets can stick together in the intestine or digestive tissue. They are also a choking risk.”
