The Federal Court of Australia has dismissed an appeal by Fewstone Pty Ltd, trading as City Beach, regarding a $14 million penalty imposed for selling non-compliant button battery products. This ruling reinforces the importance of compliance with safety standards designed to protect children from the dangers posed by button batteries.

Button batteries are particularly hazardous for young children, with three fatalities reported in Australia due to incidents involving these batteries. The products sold by City Beach, which included toys and accessories, were found to violate mandatory safety and information standards.

ACCC Commissioner Luke Woodward stated that the significant penalty serves as a deterrent for City Beach and other retailers, highlighting the necessity for businesses to implement effective compliance systems. The court noted that the sale of dangerous products necessitates a penalty that reflects the need for deterrence, regardless of profit considerations.

The ruling confirms the $14 million penalty, which was the first of its kind for breaches of button battery standards, and emphasizes the ACCC's commitment to enforcing compliance. City Beach is currently conducting a voluntary recall of the affected products and offering refunds to consumers.