ACCC takes Kmart to court over nail glue burns and button battery safety

The consumer watchdog has taken legal action against Kmart, alleging it breached Australian Consumer law by selling millions of bottles of nail glue that caused burns requiring medical treatment.

The Australian Competition and Consumer Commission (ACCC) has taken action against the retail giant in the Federal Court in Victoria, alleging Kmart sold cosmetic nail glue without warning consumers of a risk of serious injury from burns associated with it. 

The ACCC said other safety warnings were set out on the packaging and bottle, which was sold individually and with a pack of nails. 

According to court documents, between August 2017 and December 2024, at least 51 consumers complained to Kmart of skin burns caused by contact with the nail glues, of which at least 33 expressly referred to contact with fabric.

A further seven complaints not involving skin burns referred to the nail glues causing steaming, smoking, burning or melting when in contact with fabric, with consumers reporting suffering serious injuries including burns requiring medical treatment and, in some cases, hospitalisation and skin grafts. 

The ACCC claims customers sent Kmart's customer service team photos of burned clothes and skin, and some described the nail glues causing an exothermic or chemical reaction, heat and smoke, some of which were escalated internally to senior Kmart management including the CEO. 

"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," ACCC Deputy Chair Catriona Lowe said.

"It was important for Kmart to address this, once it was made aware of these serious product safety concerns."

The ACCC further alleges Kmart failed to submit mandatory serious injury reports to the Commonwealth minister as required. 

A Kmart spokesperson said it took its reporting obligations seriously and submitted mandatory injury reports about the products to the ACCC.

"While the incidents with nail glues are also historical, we regret any injury associated with these products and apologise to anyone affected. Kmart remains of the view the labelling and warnings were appropriate to prevent misuse," they said. 

Watchdog alleges button battery non-compliance

The ACCC also alleged Kmart failed to test several digital and analogue watches that contained button batteries prior to supply as legally required.

It alleges Kmart sold about 64,000 button-battery-powered watches between June 2022 and November 2024 which did not comply.

"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 has also accused Kmart of supplying GPS tracking devices known as Smart Tags that did not comply with the mandatory button battery information standard. The devices were recalled in 2024.

A Kmart spokesperson said no injuries were reported for any of the products and it had continued to strengthen the product safety and compliance processes.

"We have cooperated with the ACCC throughout its investigation and are disappointed at its decision to take action on historical matters that Kmart has addressed," it said.

"As the matter is now before the court, we will not be commenting further on the proceedings."

Ms Lowe said all businesses, especially large retailers like Kmart, are expected to have consumer safety front of mind.

"Withholding safety information can amount to false or misleading representations in breach of the Australian Consumer Law, but it also exposes consumers to risk," she said.

A court date for the matter is yet to be set.