The ACCC has commenced Federal Court proceedings against Kmart over alleged breaches of Australian Consumer Law across three product categories: cosmetic nail glue, button-battery-powered watches and Anko-branded GPS smart tags, SmartCompany reported. The regulator claims customers sent photos of burned clothes and skin to Kmart's customer service team, and some complaints were escalated to senior management including the chief executive.
Court documents state that between August 2017 and December 2024, Kmart received burn-related complaints from at least 51 consumers, with at least 33 of those explicitly citing contact with fabric. Seven additional complaints described the nail glues producing steaming, smoking, burning or melting on contact with fabric.
Among those who complained, some sustained burns that required medical treatment and, in certain cases, hospitalisation and skin grafts. The rapid heating seen when nail glue contacts fabric, tissues or wipes is an exothermic reaction linked to the primary ingredient common to many nail glues.
The ACCC also alleges Kmart did not lodge mandatory serious injury reports with the Commonwealth minister as the law requires. Under Australian law, suppliers must lodge a mandatory report of product-related injuries within two days.
The watch-related allegations cover seven Anko-branded analogue models for children and adults, and the ACCC separately alleges Kmart also did not test two Anko kids' digital watch models before supply. Under the applicable button battery safety standard, retailers must conduct pre-sale testing to confirm products have child-safe features that make it difficult for young children to access the battery compartment.
ACCC Deputy Chair Catriona Lowe said Kmart's failure to warn consumers about the burn risk, despite receiving numerous injury complaints, represented an ongoing risk of serious injury that the ACCC considered an incredibly serious matter. She said all businesses, particularly large retailers such as Kmart, are expected to keep consumer safety at the forefront of their operations. The ACCC states that button battery ingestion or insertion can kill a person within two hours, and three Australian children have died from swallowing button batteries.
Kmart said product safety and customer trust are its highest priorities, that it regrets any injury associated with the nail glue products, and apologises to anyone affected. The retailer maintained that the nail glue's labelling and warnings were sufficient to prevent misuse, and said it met its reporting obligations by lodging mandatory injury reports with the ACCC.
A Kmart spokesperson told 7NEWS that no injuries occurred from the button-battery-powered watches. Kmart said it worked with the ACCC throughout its investigation and expressed disappointment that the regulator chose to pursue legal proceedings over matters it regards as historical and already resolved.
Consumers who purchased Kmart's OXX Cosmetics nail glue, which retails at $5, should be aware the ACCC alleges the product can cause burns on contact with fabric. Kmart added a warning label to the packaging in December 2024.
Reporting: SmartCompany, ABC News, 7NEWS
Written by Pick & Scroll News from the reporting and documents linked above.
