Kmart has been taken to the Federal Court over allegations that it sold dangerous products without adequate warnings and supplied tens of thousands of items that failed to meet mandatory safety standards.
The Australian Competition and Consumer Commission (ACCC) claims the retailer’s OXX Cosmetics nail glue, sold for $5 either alone or with packets of false nails, could cause serious burns when it came into contact with fabric, tissues or wipes.
The chemical reaction can generate enough heat to burn skin. The ACCC alleges Kmart received reports of injuries linked to the glue between August 2017 and December 2024, including burns requiring medical treatment, hospitalisation and skin grafts.
Kmart added a safety warning to the product packaging in December 2024. ACCC deputy chair Catriona Lowe said the retailer’s alleged failure to warn customers after receiving reports of injuries had left them exposed to an ongoing risk of serious harm.
“We consider that Kmart’s failure to warn consumers of the risk of burns after receiving numerous consumer reports of burn injuries associated with the use of the nail glue exposed consumers to an ongoing risk of serious injury, as an incredibly serious matter,” Ms Lowe said.
“It was important for Kmart to address this, once it was made aware of these serious product safety concerns.”
Button battery safety allegations
The court action also concerns children’s watches containing button batteries. The ACCC alleges Kmart failed to test two models of Anko digital watches and seven models of analogue watches to establish that young children could not open their battery compartments.
About 64,000 button battery-powered watches were allegedly sold without meeting mandatory standards between June 2022 and November 2024.
“These watches contained button batteries, but Kmart did not test them prior to supply to show that young children could not open the battery compartments. This is despite many of the watches being specifically designed for children,” Ms Lowe said.
The ACCC warned that an ingested or inserted button battery can kill a person within two hours. It said three children in Australia had died after ingesting button batteries.
The proceedings also relate to more than 800 Anko Smart Tags, which are GPS tracking devices. The ACCC alleges the products did not comply with button battery safety standards because their warnings did not include all the information required.
Kmart recalled the Smart Tags in 2024 after engagement with the ACCC, the commission said.
A Kmart spokesperson said the retailer was disappointed that the ACCC had begun court proceedings despite co-operating with its investigation.
“While the incidents with nail glues are also historical, we regret any injury associated with these products and apologise to anyone affected,” the spokesperson said.
“Kmart remains of the view the labelling and warnings were appropriate to prevent misuse. We take our reporting obligations seriously and submitted mandatory injury reports about these products to the ACCC.”
The spokesperson said no injuries had occurred in connection with the children’s watches. Suppliers are required to report injuries caused by their products to the ACCC within two days.
