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The ACCC Just Went After Amazon Over Button Batteries. Every Australian Retailer Should Pay Attention.

The ACCC's product safety action against Amazon isn't a big-platform problem — it's a signal about where the regulator is looking. If you sell products containing button batteries, your compliance obligations under Australian Consumer Law carry real penalties, and the ACCC has just shown it will enforce them.

JH
Jennifer Hansen
Founder, Retail Revolution Co
| 5 June 2025 | 7 min read

The ACCC taking action against one of the world's largest retailers for button battery non-compliance is not a story about Amazon. It's a story about what the regulator is prioritising and who else is on the list. If you import products, sell toys, novelty items, remote controls, small electronics, or watches — and you haven't audited your range for button battery compliance — you have an exposure you may not fully understand.

What the mandatory standard actually requires

The mandatory standard for button batteries came into force in Australia in June 2022 and was progressively enforced from November 2022. It applies to any product that contains, uses, or is supplied with a button or coin battery.

The requirements are specific:

  • Battery compartments must be secured so a child cannot open them without a tool or two simultaneous actions
  • Products must carry prescribed warning labels — exact wording, exact placement
  • Packaging must meet prescribed requirements
  • Suppliers must test their products against the standard and have documentation to prove it

The standard exists because button batteries are genuinely dangerous. A swallowed button battery can cause severe internal burns within two hours. Children under five are most at risk. This is not a technical regulation invented by bureaucrats — it is a direct response to deaths and serious injuries.

The button battery mandatory standard has been in force since 2022. 'I didn't know' is not a legal defence — and the ACCC's action against Amazon makes clear that enforcement applies regardless of your size or profile.

Who the standard applies to

This is where most retailers underestimate their exposure.

The obligation sits with whoever supplies the product to the Australian market. That includes:

  • Importers — if you source product directly from overseas manufacturers and bring it into Australia, you are the responsible supplier
  • Retailers who purchase from Australian wholesalers — you are still a supplier under the law and carry obligations
  • Marketplace sellers — the ACCC's Amazon action is specifically significant here, because it puts on notice every third-party seller operating through a platform

The common assumption is that compliance is the manufacturer's problem. It is not. If your name is on the invoice and the product is on your shelf or your website, you have obligations.

Where the compliance gap is widest

In my experience managing buying across 50-plus stores and multiple imported product categories, the compliance gap is widest in four areas.

Toys and children's novelty items. Small toys with lights, sound, or motion almost always contain button batteries. Many were designed and manufactured before the Australian standard came into effect, and suppliers have not always updated their products or packaging for the Australian market specifically. A quick test: if you can open the battery compartment with a fingernail, it doesn't comply.

Remote controls and small electronics. Key finders, small remotes, laser pointers, novelty gadgets. Often sourced at low cost with minimal documentation. The battery compartment design in many of these products will not meet the secured compartment requirement.

Watches. Fashion and novelty watches are high risk. The watch case often doubles as the battery compartment, and the standard's requirement for two simultaneous actions or a tool to open applies directly. Many watch products on the Australian market — particularly at the lower end — do not comply.

Seasonal and impulse product. Christmas, Halloween, and general novelty product sourced quickly for a seasonal window is where I see the most shortcuts. Short lead times, pressure on cost, and limited compliance review create real risk.

The button battery mandatory standard came into force in June 2022. Any non-compliant product supplied after this date carries liability for the supplier — per unit, not per product line.

What non-compliance actually costs you

Non-compliance with a mandatory standard under the Australian Consumer Law carries serious consequences.

The ACCC can issue a compulsory recall — which means you fund the recall, manage the logistics, and notify customers. For a retailer with hundreds or thousands of units in the field, that is a material cost.

Civil penalties apply to suppliers who breach a mandatory standard. For a body corporate the maximum penalty per contravention is significant — and 'per contravention' can mean per unit supplied.

Beyond the direct financial exposure, a recall or enforcement action is public. The ACCC publishes recall notices. Your customers see it. Your landlord sees it. Your bank sees it.

The ACCC's action against Amazon matters precisely because it removes any residual belief that the regulator is only interested in small operators who are obviously flouting the rules. They went after one of the most sophisticated retail operations on the planet. They will not hesitate to go after a mid-sized Australian importer or specialty retailer.

What to do now

This is not a complex problem to start fixing. It requires time and discipline, not legal expertise.

Step one: audit your range. Go through every SKU and identify any product that contains, uses, or is supplied with a button or coin battery. Include anything where a battery might be inside the product even if it isn't advertised as a battery-powered item.

Step two: check the packaging and compartment design. For each identified product, check whether the battery compartment meets the secured compartment requirement and whether the warning labels match the prescribed text and placement exactly.

Step three: get supplier declarations. For any product that you cannot verify independently, request written confirmation from your supplier that the product meets the Australian mandatory standard. Keep that documentation. If you are ever investigated, it demonstrates due diligence.

Step four: don't re-order non-compliant product. If a product in your current range doesn't comply, work with your supplier to get a compliant version or cut the line. Continuing to sell a product you know is non-compliant after conducting an audit creates a much worse position than the non-compliance you started with.

Step five: make your team your compliance system. Brief your store managers, department heads, and buyers on what the standard requires and what non-compliant product looks like. Your team sees new product arrive, processes supplier samples, and walks the floor every day. If they know a battery compartment that opens too easily is a liability — not just a design quirk — they catch problems before the ACCC does. Make it part of range induction for buyers and a checklist item at store receiving. Compliance that lives only in a head office spreadsheet is fragile. Compliance that is understood by the person unpacking the carton holds.

Product safety compliance is not optional and it is not someone else's responsibility. The ACCC just demonstrated that at scale. Every Australian retailer selling button battery products right now needs to be able to answer one question: if the regulator asked for your compliance documentation tomorrow, what would you hand them?

Not sure where your product safety exposure sits?

A Retail Health Check covers compliance risk alongside commercial performance. If you're importing product or managing a broad range, it's worth an honest look before the ACCC does it for you.

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JH

Jennifer Hansen

Founder of Retail Revolution Co. 25 years in retail, 15 in senior leadership, most recently as General Manager overseeing 50+ stores across buying, operations, IT, and marketing. I work with SME retailers and international brands entering the Australian market.

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