The Federal Court of Australia has ordered fashion retailer City Beach to pay $14 million in penalties for selling products that did not comply with button battery safety standards. The violations occurred over a period from June 2022 to October 2024, affecting over 54,000 instances of non-compliance with safety standards and over 56,000 instances regarding information standards.

The products in question included toys, digital notepads, keyrings, lights, and accessories for Crocs shoes, many of which were marketed towards children. The Court highlighted the serious risks posed to children, noting that City Beach's actions could have led to severe injury or even death.

The Court criticized City Beach for its lack of urgency in recalling the non-compliant products and emphasized the importance of adhering to safety standards. ACCC Commissioner Luke Woodward stated that the penalty serves as a warning to businesses about the consequences of failing to meet safety standards for button batteries.

This case marks the first court action taken by the Australian Competition and Consumer Commission (ACCC) regarding breaches of button battery safety standards. In addition to the financial penalties, the Court has mandated City Beach to implement a consumer law compliance program and to conduct advertising as part of a voluntary recall of the affected products.