Kmart allegedly sold nail glue without adequate warnings about burn risks, and retailed products without testing button battery safety.
Australia’s consumer watchdog is taking Kmart to court, alleging the department store breached the law by selling cosmetic nail glue without adequate warnings about its potential to cause burns and by failing to meet button battery safety standards.
A Kmart spokesperson said the business was “disappointed” in the decision, given its willingness to work with authorities to address the nail glue concerns.
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The Australian Consumer and Competition Commission (ACCC) on Thursday announced it has commenced Federal Court proceedings and seeks penalties against the Wesfarmers-owned business.
The ACCC alleges Kmart failed to adequately disclose that its own-brand nail glue, used to affix artificial nails, could cause burns when exposed to fabric.
In its statement, the agency said customers reported burns to Kmart between August 2017 and December 2024. The ACCC states some burns needed medical intervention, and occasionally, skin grafts on affected areas.
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“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,” said ACCC Deputy Chair Catriona Lowe.
In December 2024, Kmart added warning labels about the product’s potential to react with fabric.
“It was important for Kmart to address this, once it was made aware of these serious product safety concerns,” said Lowe.
The ACCC further alleges Kmart sold seven models of Anko-branded watches for both children and adults between June 2022 and November 2024, without adhering to button battery safety standards.
Button batteries can cause serious burns when ingested. Safety standards require retailers to test products for child-safe features preventing easy battery removal before they go on sale.
“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,” said Lowe.
The ACCC further alleges Kmart retailed Anko-branded GPS smart tags which similarly fell short of button battery standards. Kmart voluntarily recalled those products in late 2024 after engagement with the ACCC.
Kmart responds
In a statement provided to SmartCompany, a Kmart representative said the “safety of our products and our customers’ trust are our highest priorities.”
“While the incidents with nail glues are also historical, we regret any injury associated with these products and apologise to anyone affected,” they added.
However, the business is “disappointed” in the regulator’s decision to pursue legal action regarding its nail glue sales.
“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.”
“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.”
Regarding the button battery safety allegations, the spokesperson said there were no reported injuries related to the products in question, and Kmart has “continued to strengthen our product safety and compliance processes.”
“As the matter is now before the Court, we will not be commenting further on the proceedings,” the spokesperson added.