Retailer Fined $9.4 Million Over Non-Compliant Button Battery Products

Key Takeaways

• $9.4 Million Penalty Imposed: The Federal Court ordered City Beach to pay about $9.4 million (AUD 14 million) for breaching mandatory button battery safety and information standards.
• Widespread Non-Compliance: The retailer admitted to supplying non-compliant products on more than 110,000 occasions between June 2022 and October 2024.
• Serious Risk to Children: The Court found that City Beach’s conduct exposed more than 50,000 young children to the risk of severe injury or death, noting many products were marketed or intended for children.
• First ACCC Court Case on Button Batteries: This marks the first court proceeding brought by the ACCC for breaches of Australia’s button battery safety standards.

Deep Dive

Australian fashion retailer City Beach has been ordered to pay about $9.4 million (AUD 14 million) in penalties after the Federal Court of Australia found it supplied tens of thousands of products that failed to meet mandatory button battery safety and information standards.

The Court found that between June 2022 and October 2024, City Beach supplied products that did not comply with the button battery safety standard on more than 54,000 occasions, and breached the button battery information standard on more than 56,000 occasions during the same period. The products included toys, digital notepads, keyrings, lights, and light-up Jibbitz accessories for Crocs shoes, many of which were marketed or intended for children.

In its judgment, the Court said City Beach’s failures were “pervasive,” pointing to a lack of effort to understand and comply with obligations under the Australian Consumer Law. The Court found that the retailer’s conduct exposed more than 50,000 young children to the risk of severe injury or death, and described City Beach’s “lack of urgency in seeking to recall the non-compliant products” as “condemnable.”

The case was brought by the Australian Competition and Consumer Commission, marking the first court proceeding by the ACCC for breaches of Australia’s button battery safety standards. Earlier this month, the Court had already found City Beach in breach of the Australian Consumer Law for selling consumer novelty products that did not meet the mandatory standards.

“Today’s penalty sends a clear message to businesses and suppliers that failing to meet safety standards for button batteries is unacceptable and can result in serious penalties,” said Luke Woodward, an ACCC commissioner. “Button batteries pose a significant risk to children, and can be fatal. The ACCC will not hesitate to take strong enforcement action against businesses that fail to comply with the button battery standards.”

In addition to the monetary penalty, the Court ordered an injunction restraining City Beach from future contraventions of the mandatory standards. The retailer must also implement a consumer law compliance program and undertake advertising as part of its voluntary recall of the affected products.

The $9.4 million penalty follows a contested hearing on penalties and reflects the Court’s view of the seriousness of the breaches and the risks posed to children by non-compliant button battery products.

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