ACCC Commences Legal Action Against Kmart
Australia's consumer watchdog alleges Kmart sold unsafe products lacking mandatory safety warnings.
Updated on Oct. 15, 2026 in Consumer Goods
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The Australian Competition and Consumer Commission has initiated Federal Court action against Kmart for allegedly selling products that failed to meet safety standards. These items include fingernail glue linked to burn injuries and devices containing button batteries that lacked required warning labels.
Why it matters
The legal action highlights the critical importance of mandatory product safety standards to protect the public from serious harm. The ACCC alleges these products posed significant risks, including potential death from swallowed batteries and severe burns requiring hospitalisation.
Kmart sold approximately 64,000 button battery-powered watches and 800 Anko-branded smart tags without proper safety testing. Consumers also reported suffering burn injuries from fingernail glue products between August 2017 and December 2024.
The players
Australian Competition and Consumer Commission
The ACCC is the independent Australian government authority responsible for enforcing the Competition and Consumer Act 2010 to protect, strengthen, and supplement the competitive process.
Kmart
Kmart is a prominent Australian retail chain that provides a wide range of consumer goods, including clothing, homewares, and electronics.
The details
The ACCC alleges that Kmart failed to conduct safety testing on two Anko-branded children's watch models and seven analogue watch models. Furthermore, the regulator claims the retailer sold OXX fingernail glue for years without adequate warnings, resulting in injuries that in some cases necessitated skin grafts.
Timeline
August 2017 to December 2024: Consumers reported burn injuries from fingernail glue.
December 2024: Kmart added safety warnings to its fingernail glue products.
15 October 2026: The ACCC commenced legal action against Kmart.
Market Landscape
This enforcement action aligns with broader regulatory trends aimed at ensuring large retailers adhere to strict product safety standards. It positions the ACCC as a central check against corporate failures to prioritise consumer safety in the competitive retail sector.
Customers who purchased Kmart products may face potential safety risks and should check their household items against official recall lists. The outcome of this case may also lead to stricter retail inspection procedures and changes in product labelling at major outlets.
The takeaway
Retailers hold a primary responsibility to verify that every item on their shelves meets mandatory safety standards before sale. Consumers are encouraged to remain vigilant about product warnings and to report any safety incidents to regulatory authorities.
Further reading
For more information on national safety regulations, visit the Consumer Goods section.
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