In mid-2023, we wrote about the first infringement notices that were issued by the Australian Competition and Consumer Commission (ACCC) against Dusk and The Reject Shop following the introduction of mandatory button battery safety standards in June 2022 (see our article here).
Since that time, the ACCC has undertaken further product safety enforcement actions, resulting in penalties for alleged breaches of battery button standards by businesses such as:
- MDI International Pty Ltd and TEEG Australia Pty (owner and operator of Timezone, Kingpin and Zone Bowling) for allegedly failing to comply with button battery testing requirements in relation to novelty toy products they supply; and
- Repco, Supercheap Auto and Innovative Mechatronics Group for allegedly supplying aftermarket car key remotes that did not meet the required button battery warning standards.1
Additionally, from the introduction of the standards to 30 June 2024, 123 voluntary recalls relating to likely noncompliant products were published on the ACCC’s Product Safety Australia website.2
The ACCC has now decided to make its stance on button battery safety clear by commencing the first set of legal proceedings before the Federal Court for alleged non-compliance with the button battery safety standards.
The Danger of Button Batteries
To recap, button batteries (also known as coin batteries) are small, single cell batteries with a diameter greater than their height. They are used in a broad range of consumer products such as remote controls, watches, calculators, scales and some children’s toys.
These batteries pose a safety risk to young children, as if swallowed, they can become stuck in a child’s throat and cause catastrophic injury and even death.
To address these risks, the Consumer Goods (Products Containing Button/Coin Batteries) Safety Standard 2020 (Cth) (Safety Standard) and the Consumer Goods (Products Containing Button/Coin Batteries) Information Standard 2020 (Cth) (Information Standard) were introduced in June 2022 and compliance with these standards has been a key focus of the ACCC since their introduction. The Safey Standard ensures products pass compliance testing and mandates that batteries be sold in child-resistant packaging. The Information Standard on the other hand mandates that consumer products containing button batteries must include clear warnings and safety information on packaging and instructions to alert consumers to the hazards these batteries pose, particularly to children. This includes guidance on emergency responses if ingestion occurs and applies to both the products and their accessories.
City Beach Non-Compliance
On 2 April 2025, the ACCC initiated legal proceedings against Fewstone Pty Ltd, trading as City Beach.3 It is alleged that the retailer offered over 70 product lines for sale between 22 June 2022 and 24 October 2024, that failed to meet mandatory button battery standards under the Australian Consumer Law (ACL).4 In total, more than 57,000 individual non-compliant button battery products were allegedly supplied to members of the public.5
The product lines included novelty products such as toys, keyrings, lights and light-up Jibbitz accessories for Crocs shoes. The ACCC has expressed particular concern over these products due to their appeal to young children and the serious safety risks posed by button batteries if swallowed.6
What Led to Court Action?
The ACCC alleges that City Beach has contravened sections 106 and 136 of the ACL. These provisions prohibit the supply, offer for supply or possession for the purposes of supply, of products that do not comply with the relevant safety and information standards.
The ACCC alleges that City Beach did not test products before supplying them, contrary to obligations under the Safety Standard. These standards require a representative sample of products to undergo testing before supply, to ensure that the button batteries are secure and not easily accessible by young children during product use or foreseeable misuse.7 Subsequent testing revealed that some products failed to meet this Safety Standard.
Additionally, many of the products supplied allegedly lacked the warnings mandated by the Information Standard to be displayed on the instructions, packaging and/or labels.8
The ACCC reported that despite warnings from the NSW and Queensland Offices of Fair Trading, City Beach continued to supply the non-compliant products.9 City Beach is currently conducting a voluntary recall for these products.
Key Takeaways for Suppliers of Consumer Goods
Recent enforcement actions and proceedings underscore the critical importance of complying with both the Information Standard and the Safety Standard.
Product safety continues to be a top enforcement priority of the ACCC, with a particular focus on protecting children from the risks associated with button batteries. Suppliers should be aware that this area is being closely regulated, being identified as a key focus area for the ACCC in the 2025-2026 financial year.10
Businesses that supply products containing button batteries should urgently review their products to ensure compliance with the mandatory Safety and Information Standards as failure to do so may result in significant consequences under the ACL.
How can we help?
We have a dedicated Consumer and Contracting Law team that can assist you with understanding your obligations in relation to supplying products particularly those with specific mandatory standards such as button batteries. Our team also provides training to in-house counsel on consumer and commercial contracting fundamentals through its Advanced Contract Essentials workshop. Please contact us if you would like more information about the workshop services we provide.
This article was written by Teresa Torcasio, Partner and Caitlin Littler, Law Graduate.
1 Australian Competition and Consumer Commission (ACCC), ‘Annual Report 2023-24’ (Publication, 2 October 2024).
2 Ibid.
3 ACCC, ‘City Beach in court for alleged sale of thousands of non-compliant button battery products’ (Media Release, 3 April 2025).
4 Competition and Consumer Act 2010 (Cth) sch 2 (Australian Consumer Law).
5 Ibid.
6 Ibid.
7 Consumer Goods (Products Containing Button/Coin Batteries) Safety Standard 2020 (Cth) ss8, 9 and ss12-17.
8 Consumer Goods (Products Containing Button/Coin Batteries) Information Standard 2020 (Cth) ss8, 9.
9 ACCC, ‘City Beach in court for alleged sale of thousands of non-compliant button battery products’ (Media Release, 3 April 2025).
10 ACCC, ‘Compliance and enforcement priorities 2025-26’ (Publication, 20 February 2025).
