Kmart taken to court for ‘hazardous’ products, says it’s disappointed by ACCC action

Kmart is being taken to court over allegations it sold millions of hazardous products, including dangerous nail glue and non-compliant button batteries.

The Australian Competition and Consumer Commission (ACCC) claims the retail giant misled shoppers by selling millions of units of OXX Fingernail Glue without warning labels detailing its potential to cause severe burns.

Between August 2017 and December 2024, the ACCC says multiple shoppers reported serious injuries from the glue, including burns, chemical reactions, and smoke emissions.

In some cases, victims required hospitalisation and skin grafts.

The product is a burn risk when coming into contact with fabrics like clothes or tissues, the ACCC says.

ACCC deputy chair Catriona Lowe said Kmart failed to act despite receiving numerous reports from affected consumers.

“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,” she said.

The ACCC also alleges that Kmart sold non-compliant button batteries in children’s products, including digital and analogue watches and GPS smart tags.

Suppliers are legally required to test button battery products before they hit shelves, but the regulator claims more than 64,000 watches were sold without prior testing.

Lowe warned that swallowable button batteries can be deadly for young children.

“Kmart sold millions of units of some of these products, each posing a potential danger to consumers,” she said.

“We will allege Kmart’s conduct showed serious compliance failures which exposed the public to a significant risk of product safety harm.”

Additionally, the ACCC claims Kmart supplied more than 800 Anko-branded GPS Smart Tags that failed to meet mandatory safety standards.

While the devices included some safety warnings, they allegedly omitted several required disclosures before Kmart eventually issued a recall in 2024.

The watchdog is seeking financial penalties, court declarations, and costs against the retailer that has more than 320 stores across Australia and New Zealand.

Read more

Mark Zuckerberg responds after Guinness goes viral

Kmart says it has cooperated with the ACCC and is “disappointed at its decision to take action on historical matters that Kmart has addressed”.

Kmart said the watch button battery issues were historical and related to compliance processes in 2023.

It said the smart tag complain was “self-identified by Kmart in 2024 and a voluntary recall conducted”.

Neither caused any reported injuries, it said.

“While the incidents with nail glues are also historical, we regret any injury associated with these products and apologise to anyone affected,” a spokesperson said.

“Kmart remains of the view the labelling and warnings were appropriate to prevent misuse.  We take our reporting obligations seriously and submitted mandatory injury reports about these products to the ACCC.”

Kmart said “the safety of our products and our customers’ trust are our highest priorities”.