May 29 (Reuters) - Australia's competition watchdog said on Friday that it has initiated legal action against Amazon's local unit, alleging breaches of product safety labelling laws related to children's backpacks.
According to the Australian Competition and Consumer Commission (ACCC), the company is accused of supplying children's "Unicorn Toddler Backpacks" that were not compliant with mandatory safety standards for button batteries.
The ACCC alleges that the backpacks were held in Amazon Commercial
Services' fulfilment centres in Australia between June 22 and November 1, 2022, without the required warning labels either on the products themselves or on their outer packaging.
"Unicorn Toddler Backpacks" were designed for children and included a detachable light-up unicorn plush toy containing button batteries, ACCC said in its statement.
The watchdog alleges that 41 of the backpacks were purchased by Australian consumers through "amazon.com.au" during the relevant period, with a further 267 units held in Amazon's Australian fulfilment centres, as of 1 November 2022.
The ACCC argues that by having possession and control of the goods through this service, Amazon AU is subject to the same obligations under Australian Consumer Law as other suppliers.
"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," ACCC Deputy Chair Catriona Lowe said.
The regulator is seeking declarations, penalties, costs and other orders from the Federal Court.
The ACCC said this was its first Federal Court case against an online marketplace alleging breaches of mandatory product safety laws.
(Reporting by Rajasik Mukherjee; Editing by Shreya Biswas and Sherry Jacob-Phillips)
