ACCC Takes Kmart to Court Over Unsafe Nail Glue and Batteries
Retailer faces legal action for failing to warn consumers about severe burn risks and safety hazards.
1Legal Action Initiated
The Australian Competition and Consumer Commission has filed legal proceedings against Kmart in the Federal Court. The watchdog alleges the retailer sold millions of OXX nail glue bottles without adequate burn risk warnings. Customers reported severe injuries, including third-degree burns and skin grafts, after the product reacted dangerously with various fabrics.
2Persistent Safety Failures
Between August 2017 and December 2024, Kmart reportedly received over 50 consumer complaints regarding the glue. Despite these reports, the retailer continued selling the products without updating safety labels. While packaging was eventually modified in December 2024, Kmart continued to supply existing stock without the necessary warnings until February 2025.
3Chemical Reaction Risks
ACCC deputy chair Catriona Lowe explained that the glue triggers an exothermic chemical reaction when contacting fabric. This process causes smoking, steaming, and melting, which can lead to the substance sticking to skin. The ACCC argues that Kmart failed to provide consumers with the information required to make informed purchasing decisions.
4Button Battery Violations
Beyond the nail glue, the ACCC alleges Kmart breached safety standards regarding button batteries in children's watches. The retailer reportedly sold approximately 64,000 units between June 2022 and November 2024 without conducting mandatory safety testing. These tests are essential to ensure battery compartments remain inaccessible to children to prevent ingestion risks.
5Tracking Tag Non-Compliance
The legal action also covers 800 Anko-branded GPS tracking tags sold by the retailer. The ACCC claims these devices failed to comply with mandatory safety standards because they lacked the full suite of required warnings. This oversight is part of a broader pattern of alleged non-compliance identified by the consumer watchdog.
6Kmart's Official Response
A Kmart spokeswoman expressed disappointment regarding the legal action, citing the company's cooperation during the investigation. The retailer maintains that its previous labelling was appropriate to prevent misuse and confirmed that mandatory injury reports were submitted. Kmart issued an apology to those affected by injuries associated with the nail glue products.
7Potential Financial Penalties
Under Australian consumer law, companies found guilty of selling products without mandatory safety information face significant financial consequences. The maximum penalty for such breaches can reach 100 million dollars. This case highlights the strict regulatory environment regarding product safety and the legal obligations large retailers must uphold to protect their customers.
8Regulatory Enforcement Significance
This litigation underscores the ACCC's focus on holding large businesses accountable for material safety disclosures. By targeting both chemical hazards and physical product design flaws, the regulator emphasizes that safety information must be immediately visible to consumers. The outcome will likely influence how major retailers manage product risk and safety compliance.