The ACCC has commenced Federal Court action against Kmart Australia Ltd, a subsidiary of Wesfarmers (ASX: WES), alleging it breached the Australian Consumer Law by selling millions of units of cosmetic nail glue without adequate warnings and thousands of units of button battery products which did not comply with mandatory standards.
The ACCC alleges that Kmart sold cosmetic nail glue without warning consumers of a risk of serious injury from burns associated with it. Other safety warnings were set out on the packaging and bottle. The nail glue was sold separately and together in a pack of false nails.
Further, Kmart allegedly failed to comply with mandatory button battery standards in relation to digital and analogue watches and GPS trackable smart tags. The standards are designed to protect consumers from the risk of serious or fatal injury.
"Kmart sold millions of units of some of these products, each posing a potential danger to consumers, including young children. We will allege Kmart's conduct showed serious compliance failures which exposed the public to a significant risk of product safety harm," ACCC Deputy Chair Catriona Lowe said.
"Button batteries are potentially deadly to young children if swallowed or inserted. We expect all businesses, especially large retailers like Kmart, to have consumer safety front of mind."
The ACCC is seeking penalties, declarations, costs and other orders.
Allegations regarding Kmart's home brand OXX fingernail glue
Kmart sold cosmetic nail glue which can cause burns to human skin when it comes in contact with fabric (such as clothes, tissues, wipes).
It is alleged Kmart made false and misleading representations by selling the cosmetic nail glue without warning consumers about the safety risk of burns associated with using the product, even though Kmart knew of this safety risk after receiving reports from consumers.
Consumers reported burn injuries to Kmart between August 2017 and December 2024. These included serious injuries such as burns requiring medical treatment including, in some cases, hospitalisation and skin grafts. Many of these reports related to injuries associated with fabric. Some customers also reported chemical reactions or smoke while using the nail glue.
Kmart added a safety warning to the product about the risk of burns when in contact with fabric in December 2024.
"We consider that Kmart's failure to warn consumers of the risk of burns after receiving numerous consumer reports of burn injuries associated with the use of the nail glue exposed consumers to an ongoing risk of serious injury, as an incredibly serious matter. It was important for Kmart to address this, once it was made aware of these serious product safety concerns," Ms Lowe said.
Image of one type of Kmart nail glue
Allegations relating to Anko children's and adults' watches containing button batteries
The ACCC alleges that Kmart failed to test two models of an Anko kids' digital watch and seven models of analogue watches prior to supply, as required by mandatory button battery standards.
The standards require suppliers to test any product that contains a button battery for safety features before supplying them. The ACCC alleges that Kmart sold about 64,000 button battery powered watches between June 2022 and November 2024 which did not comply with this requirement.
"These watches contained button batteries, but Kmart did not test them prior to supply to show that young children could not open the battery compartments. This is despite many of the watches being specifically designed for children," Ms Lowe said.
Images of one of the digital children's watches
Allegations regarding Anko Smart Tags
The ACCC also alleges that Kmart supplied more than 800 units of Anko-branded GPS tracking devices, called Smart Tags, that did not comply with the mandatory button battery information standard. While there were some safety warnings on these products, these did not include all the matters that were required by the standard. After ACCC engagement, Kmart recalled the Smart Tags in 2024.
Image of Anko Smart Tag
Button battery safety
Button batteries pose a significant risk to young children if swallowed or inserted. In Australia, three children have died from ingesting button batteries. Parents and carers should seek immediate medical attention if they suspect a button battery has been ingested or inserted, as severe or fatal injuries can occur in two hours or less.
Australia's mandatory button battery standards(link is external), which came into effect in June 2022, aim to reduce the risk of death or serious injury caused by button batteries, particularly to children.
The safety standards require child safe packaging and secure battery compartments. The information standards require packaging and batteries to display warning information and emergency advice.
Businesses must test products containing button batteries before supplying to consumers to demonstrate compliance with the safety standards.
More information on button battery safety is available on the ACCC Product Safety website.(link is external)
Background
Kmart is a large national retailer with over 320 stores in Australia and New Zealand, as well as an online presence. Kmart is a subsidiary of Wesfarmers, an ASX listed company.
Anko is Kmart's home brand, specialising in a large range of low-cost products including appliances, clothing and toys. OXX Cosmetics is Kmart's home brand for cosmetics.
Note
The ACCC supports ongoing reforms to close gaps in Australia's product safety framework to prevent consumers being exposed to, and potentially harmed by, unsafe goods.
Product safety regulation for general consumer products is a shared responsibility between the ACCC and the states and territories.
If a supplier finds that a product they supply is unsafe, we expect the supplier to follow our guidelines(link is external) and recall the product voluntarily and remove it from the market.
If a supplier becomes aware of a death or serious injury/illness caused by a product they supply, the supplier must make a mandatory report within 2 days. This can be notified on the ACCC Product Safety(link is external) website.
Concise statement
ACCC vs Kmart Concise Statement 15 October 2026 ( PDF 371.56 KB )
This document contains the ACCC's Concise Statement, which provides a summary of the ACCC's case. Confidential information in the Concise Statement has been redacted. We will not be uploading further documents.
