The ACCC has commenced Federal Court proceedings in Victoria against Kmart, alleging breaches of Australian Consumer Law across three product categories, ABC News reported. The regulator alleges the retailer failed to warn shoppers about the burn risk from OXX cosmetic nail glue, sold approximately 64,000 Anko watches with untested button battery compartments, and supplied more than 800 Anko Smart Tags without mandatory safety warnings.
Court documents state that Kmart received at least 51 consumer complaints of skin burns from nail glue contact between August 2017 and December 2024, with at least 33 of those complaints expressly mentioning fabric contact. Consumers reported suffering serious injuries, among them burns needing medical treatment and, in some instances, hospitalisation and skin grafts. Seven additional complaints described the nail glue producing steaming, smoking, burning or melting on contact with fabric.
Some of the complaints, including photos of burned clothing and skin, were escalated within the company to senior management, reaching as high as the CEO. The ACCC alleges Kmart did not warn shoppers about the burn risk until December 2024.
The ACCC alleges Kmart sold the watches between June 2022 and November 2024 without testing them before supply to confirm children could not open the battery compartments. The watch range included two children's digital models and seven analogue models. Deputy Chair Catriona Lowe said that, after receiving many consumer reports of burn injuries from the nail glue, Kmart's failure to warn shoppers left them facing an ongoing risk of serious injury.
She said the watches were not tested before being supplied to confirm that young children were unable to open their battery compartments, even though many of the models were designed specifically for children. Three children in Australia have died after swallowing button batteries, and the ACCC has warned that a battery that is swallowed or inserted into the body can cause serious or fatal injury within two hours.
The ACCC further alleges Kmart did not lodge mandatory serious injury reports with the Commonwealth minister as the law requires. The Smart Tags were recalled in 2024 following ACCC intervention. A Kmart spokesperson expressed regret over any injury linked to the nail glue and apologised to those affected, while holding that the product's labelling and warnings were sufficient to prevent misuse.
The spokesperson said the company lodged mandatory injury reports about the products with the ACCC and had worked with the regulator throughout the investigation. A court date has not yet been set.
Consumers who purchased OXX cosmetic nail glue from Kmart, sold individually or in packs with false nails, should be aware of the burn risk when the product contacts fabrics. Parents and carers are advised to seek immediate medical attention if a child is suspected of having swallowed or inserted a button battery. The outcome of the Federal Court proceedings could result in financial penalties being imposed on Kmart.
Reporting: The Nightly, ABC News
Written by Pick & Scroll News from the reporting and documents linked above.
