Kmart in court over nail glue burns and battery dangers

The Australian Competition and Consumer Commission has launched Federal Court proceedings against Kmart, alleging the retailer sold millions of cosmetic nail glue products without adequate burn warnings and thousands of button battery products that failed to meet mandatory standards.

The case covers Kmart’s OXX cosmetic nail glue, Anko children’s and adults’ watches, and Anko Smart Tags. The regulator alleges the products exposed consumers to risks of serious injury, including burns and potentially fatal injuries from button batteries.

The ACCC is seeking penalties, declarations, costs and other orders against the Wesfarmers-owned retailer.

“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.”

Burn reports dating back to 2017

The ACCC alleges Kmart made false and misleading representations by selling its cosmetic nail glue without warning consumers about the risk of burns, despite receiving reports of injuries.

The glue, sold separately and in packs of false nails, can cause skin burns when it contacts fabric, including clothing, tissues and wipes.

Between August 2017 and December 2024, consumers reported burn injuries to Kmart, including injuries requiring medical treatment and, in some cases, hospitalisation and skin grafts.

Many reports involved contact with fabric. Some customers also reported chemical reactions or smoke while using the glue.

Although the packaging and bottle carried other safety warnings, Kmart added a warning in December 2024 about burns associated with fabric contact.

“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,” Lowe said.

About 64,000 watches allegedly sold without required testing

The regulator also alleges Kmart failed to carry out mandatory testing before supplying two models of Anko children’s digital watches and seven models of analogue watches.

About 64,000 button-battery-powered watches were sold between June 2022 and November 2024, according to the ACCC.

The standards require suppliers to test products containing button batteries before supplying them to demonstrate compliance with safety requirements.

“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,” Lowe said.

Smart Tags recalled after ACCC engagement

The proceedings also cover more than 800 Anko Smart Tags, which the ACCC alleges did not comply with the mandatory button battery information standard.

The GPS tracking devices carried some safety warnings, but allegedly omitted information required under the standard.

Kmart recalled the Smart Tags in 2024 following engagement with the regulator.

Australia’s mandatory button battery standards took effect in June 2022. They cover requirements including secure battery compartments, child-safe packaging, warning information and emergency advice.

The ACCC says three children in Australia have died after ingesting button batteries. It advises parents and carers to seek immediate medical attention if they suspect a child has swallowed or inserted one, as severe or fatal injuries can occur within two hours or less.