ACCC sues Kmart over unsafe nail glue, button battery watches, and Smart Tags

Consensus Summary

The Australian Competition and Consumer Commission (ACCC) has taken Kmart to Federal Court, alleging the retailer sold unsafe products that caused serious injuries to consumers. The lawsuit centers on three main issues: nail glue that caused burns when in contact with fabric, button-battery-powered watches that lacked safety testing, and Smart Tags that failed to meet mandatory safety standards. Both ABC and 7NEWS report that the ACCC claims Kmart’s negligence exposed consumers to ongoing risks despite receiving numerous complaints and internal escalations.

The nail glue controversy spans from August 2017 to December 2024, during which at least 51 consumers reported burns, with 33 explicitly mentioning fabric contact. The ACCC argues that Kmart’s warnings were inadequate, despite the retailer adding a safety notice in December 2024. Meanwhile, the watch-related allegations involve approximately 64,000 button-battery-powered timepieces sold between June 2022 and November 2024, which the ACCC claims were not tested to prevent young children from accessing the batteries. The ACCC also alleges Kmart sold 800 non-compliant Smart Tags in 2024, which were later recalled.

Key figures in the dispute include ACCC Deputy Chair Catriona Lowe, who emphasized the severity of the risks and Kmart’s failure to prioritize consumer safety. Kmart’s spokesperson defended the company, stating it regrets any injuries, apologizes to affected consumers, and claims it fulfilled its reporting obligations. Both outlets cite Kmart’s cooperation with the ACCC’s investigation but note the retailer’s disappointment over the legal action, framing the incidents as historical matters that have already been addressed.

While both sources agree on the core allegations, there are subtle differences in emphasis. ABC highlights internal escalations of nail glue incidents to Kmart’s CEO, whereas 7NEWS focuses more on the specific brands and models involved, such as the OXX Cosmetics nail glue and Anko watches. Additionally, ABC notes that Kmart added a safety warning in December 2024, a detail not explicitly mentioned in 7NEWS’ reporting. Both outlets, however, underscore the ACCC’s position that Kmart’s response was insufficient to mitigate the risks.

The legal proceedings are ongoing, with no court date yet set. The ACCC’s lawsuit aims to hold Kmart accountable for breaching Australian Consumer Law, particularly regarding mandatory safety warnings and product testing. Kmart’s spokesperson has indicated the company will not comment further on the proceedings, leaving the resolution of the case to the court’s decision. The ACCC’s actions reflect its broader stance that large retailers must prioritize consumer safety above all else.