Fashion retailer Fewstone, trading as City Beach, has been ordered by the Federal Court to pay $14 million in penalties for selling non-compliant button battery products.
City Beach admitted that, between June 2022 and October 2024, it had supplied products that that did not comply with the button battery safety standard on more than 54,000 occasions, and that during the same period it had supplied products that did not comply with the button battery information standard on more than 56,000 occasions.
The products included toys, digital notepads, keyrings, lights and light-up Jibbitz accessories for Crocs shoes. The Court noted that many of these products were marketed or intended for children.
The Court observed that there were pervasive failures by City Beach to inform itself of its obligations under the Australian Consumer Law and to comply with its obligations as a retailer of products which may cause serious harm, and that City Beach's unlawful conduct put more than 50,000 young children at risk of severe injury or death.
The Court described City Beach's "lack of urgency in seeking to recall the non-compliant products" as "condemnable."
"Today's penalty sends clear message to businesses and suppliers that failing to meet safety standards for button batteries is unacceptable and can result in serious penalties," ACCC Commissioner Luke Woodward said.
"Button batteries pose a significant risk to children, and can be fatal. The ACCC will not hesitate to take strong enforcement action against businesses that fail to comply with the button battery standards."
This was the first court proceeding brought by the ACCC for breaches of the button battery safety standards.
Earlier this month, the Court found City Beach breached the Australian Consumer Law by selling a range of consumer novelty products that did not comply with mandatory button battery safety and information standards.
The Court ordered an injunction restraining City Beach from engaging in future contraventions of the Mandatory Standards.
The Court also ordered City Beach to implement a consumer law compliance program and to undertake advertising as part of its voluntary recall of the products in question.
Following a contested hearing on penalties, today the Court ordered City Beach to pay penalties totalling $14 million.
To check if a product has been recalled, visit the ACCC product safety website or contact City Beach.
Examples of the recalled products subject to the court proceedings
Background
The ACCC commenced Federal Court proceedings against City Beach in April 2025.
City Beach is a national retailer primarily offering surf and skate consumer goods including clothing, accessories and novelty items.
Button batteries are dangerous and pose a significant risk to young children if swallowed or inserted. If swallowed, a button battery can become stuck in a child's throat and result in serious lifelong injuries or death. Insertion into body parts such as the ears or nose can also lead to serious injuries. In Australia, three children have died from inserting or ingesting button batteries. Children up to 5 years of age are at greatest risk of injury from button batteries.
Australia's mandatory button battery standards, which came into effect in June 2022, aim to reduce the risk of death or serious injury caused by button batteries.
The safety standard requires products to have secure battery compartments that are designed to be resistant to being opened by children. This is to prevent children from gaining access to button batteries. The information standard requires safety warnings to be provided with products, including seeking urgent medical advice in certain circumstances.
