Australian watchdog sues Amazon unit over children’s backpack safety

May 29 (Reuters) – Australia’s competition watchdog said on Friday 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 the backpacks were stored in Amazon Commercial Services’ fulfilment centres in Australia between June 22 and November 1, 2022, without the required warning labels on either the products or their outer packaging.

The ACCC says 41 backpacks were sold to Australian consumers via amazon.com.au during this period, with a further 267 units still held in Amazon’s fulfilment centres as of November 1, 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.

(Reporting by Rajasik Mukherjee and Aamir Sheik Khalid in Bengaluru; Editing by Shreya Biswas and Sherry Jacob-Phillips)