Peters & Peters

ESG Enforcement Tracker

Charting the rise of criminal and regulatory enforcement

Australian competition and consumer commission file claim against Amazon AU over children’s unicorn backpacks

Date:
29 May 2026
Relevant legislation/regulation:
Australian Consumer Law (ACL) (section 136(3)) and Consumer Goods (Product Containing Button/Coin Batteries) Information Standard 2020 (Information Standard) (section 8)
Jurisdiction:
Australia
Status:
New, Ongoing
Regulator/enforcement authority:
Australian Competition and Consumer Commission (ACCC)
ESG Category:
Social
Defendant(s)/subjects(s):
Amazon Commercial Services Pty Ltd (Amazon AU)

Key Facts:

On 29 May 2026, the ACCC commenced proceedings in the Australian Federal Court against Amazon AU regarding an alleged breach of ACL. Amazon AU sold Unicorn Toddler Backpacks, including a light up unicorn plush toy containing button batteries. The ACCC claim that the product and outer packaging require warning labels, due to the button batteries, and that Amazon AU’s omission to include such labels is a contravention of Australian Consumer Law.

Section 8 of the Information Standard requires that the packaging of a button/coin battery must comply with the requirements set out in the Information Standard. ACCC alleges that Amazon AU’s Unicorn Backpacks do not comply.  The Information Standard was introduced to reduce risks associated with the use of button batteries, particularly for children under five years of age. The Information Standard became mandatory for all consumer goods on 22 June 2022.

The ACCC alleges that between 22 June and 1 November 2022, Amazon AU had possession and control of a number of the Unicorn Backpacks without proper labelling (41 of these were purchased by Australian consumers, and 267 were held in Amazon AU’s fulfilment centres). The Unicorn Backpacks did not include the relevant warning labels, and as such, were in breach of Australian Consumer Law.

The ACCC’s claim identifies that:

“The purpose of the Information Standard is to reduce the risk of death or serious injury associated with button batteries, particularly to children.

The inclusion of safety information with products containing button batteries alerts consumers, especially parents and caregivers, to the presence of button batteries and the risks associates with such products, and provides guidance on seeking urgent medical attention to reduce the risk of serious or fatal injury.”

The ACCC’s claim against Amazon AU is the first Federal Court case brought against an online marketplace relating to non-compliance with product safety. The ACCC is seeking “declarations, penalties, costs and other orders” (though these are unspecified in the ACCC’s Concise Statement).

Sources: 

ACCC press release and ACCC v Amazon concise statement

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