Australia's competition watchdog, the Australian Competition and Consumer Commission (ACCC), has initiated legal proceedings against Amazon's Australian unit for allegedly breaching product safety labelling laws involving children's "Unicorn Toddler Backpacks" [1, 2, 3].
The ACCC claims the backpacks included a detachable light-up unicorn plush toy containing button batteries but lacked mandatory warning labels on the product and its outer packaging [1, 2]. The button batteries pose severe risks to young children. ACCC deputy chair Catriona Lowe said, "Button batteries pose a serious hazard for young children. If swallowed or inserted, they can cause severe internal burns and injury, and in some cases death" [1].
These backpacks were held in Amazon Commercial Services' Australian fulfilment centres between June 22 and November 1, 2022 [1, 2]. During this period, 41 of the backpacks were sold to Australian consumers through amazon.com.au, while 267 remained in Amazon’s Australian fulfilment centres as of November 1, 2022 [1, 2].
The ACCC argues that Amazon Australia is legally responsible under consumer law because it had possession and control of the goods in its marketplace service [1, 2]. This case marks the first time the ACCC has taken an online marketplace to the Federal Court for alleged breaches of mandatory product safety laws [1, 2].
The ACCC is seeking declarations, penalties, costs, and other orders against Amazon from the Federal Court [1, 2]. An Amazon spokesperson said the company is "considering the case filed by the ACCC" and maintains policies and controls to ensure product compliance and safety [2].
The legal action was initiated on May 29, 2026, based on evidence related to the backpacks held and sold during mid-2022 [1, 2, 3].
