The Federal Court has today dismissed an appeal by retailer Fewstone Pty Ltd, trading as City Beach, against a $14 million penalty for selling non-compliant button battery products, in proceedings brought by the ACCC.
Button batteries are dangerous and pose a significant risk to young children if swallowed or inserted. Three children have died in button battery incidents in Australia.
The non-compliant products, many of which were marketed to or intended for children, included toys, digital notepads, keyrings, lights and light-up Jibbitz accessories for Crocs shoes.
"The Court has today confirmed that a significant penalty is appropriate in this case to deter City Beach and other traders from failing to comply with the mandatory button battery standards," ACCC Commissioner Luke Woodward said.
"This highlights the importance of businesses implementing systems to ensure they are complying with the button battery standards, which are intended to protect the safety of children."
In December 2025, the trial judge found that between June 2022 and October 2024, City Beach sold more than 60 product types containing button batteries (on over 54,000 occasions) that did not comply with the button battery safety and/or information standards, and imposed a penalty of $14 million. City Beach had admitted this conduct breached the Australian Consumer Law.
The Full Federal Court has now dismissed City Beach's appeal that the $14 million penalty was manifestly excessive.
The Full Court today said: "The sale of a very dangerous but very cheap product contravening a safety standard may be a paradigm example of a circumstance where the appropriate penalty may bear no relevant relationship to the profit… because of the heightened need to deter corporations from ever selling such a product, or from failing to have systems and processes in place..."
As a result of today's decision, the $14 million penalty order made in December, which was the first of its kind for breaches of the mandatory button battery standards, will remain in effect.
"The ACCC will continue to take strong enforcement action where appropriate against businesses which fail to comply with the mandatory button battery safety standards," Mr Woodward said.
"Businesses are on notice that they must take button battery safety seriously and implement effective systems to ensure compliance with the mandatory standards, or they will risk substantial penalties for non-compliance."
Button batteries standards designed to reduce dangers for children
Button batteries are dangerous and pose a significant risk to young children if swallowed or inserted. Children up to five years of age are at greatest risk of injury from button batteries.
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.
Parents and carers should seek immediate medical attention if you suspect a button battery has been ingested or inserted, as a button battery can cause severe or fatal injuries in two hours or less.
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, particularly to children. These include requirements for button batteries and products containing button batteries.
The safety standard for products containing button batteries 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 for products containing button batteries requires safety warnings to be provided with products, including about seeking urgent medical advice in certain circumstances.
The ACCC consulted and engaged extensively with industry during the 18-month transition period before the standards became mandatory.
Further button battery safety and recall information is available on the ACCC Product Safety website.
Consumers who bought a product that doesn't comply with the mandatory standard or is unsafe, can report it to the ACCC.
Suppliers must report any death, serious injury or serious illness associated with a consumer good that they have supplied to the ACCC. We expect suppliers of unsafe products to follow our guidelines and recall the product voluntarily and remove it from the market.
Background
City Beach is a national retailer primarily offering surf and skate consumer goods including clothing, accessories and novelty items. City Beach operates an online store and a national network of 66 retail stores.
City Beach is conducting a voluntary recall of the products. Consumers can return recalled products to City Beach for a full refund. To check if a product has been recalled, visit the ACCC Product Safety website or contact City Beach.
The ACCC commenced Federal Court proceedings against City Beach in April 2025.
On 22 December 2025, the Federal Court ordered City Beach to pay $14 million in penalties for selling non-compliant button battery products.
