Popular Australian surf and skate retailer City Beach has been slapped with a monumental $14 million penalty for selling children's toys and accessories containing unsafe button batteries. The Federal Court found the company, trading under parent company Fewstone, guilty of widespread breaches of mandatory safety standards over a two-year period.
A "Condemnable" Lack of Urgency in Recall
The Australian Competition and Consumer Commission (ACCC) initiated Federal Court proceedings against City Beach in April 2025. The court heard that between June 2022 and October 2024, City Beach supplied non-compliant products on more than 54,000 occasions. Furthermore, the retailer failed to provide required safety information with these products over 56,000 times.
The court was particularly scathing of the company's delayed response to the crisis, describing its "lack of urgency in seeking to recall the non-compliant products" as "condemnable". This conduct exposed more than 50,000 young children to potential severe injury or death.
Popular Christmas Items Among Dangerous Products
The unlawful items were not obscure products but popular gift choices, especially during the holiday season. The range included:
- Various children's toys
- Digital notepads
- Keyrings and novelty lights
- Light-up Jibbitz accessories for Crocs shoes
Many of these were explicitly marketed or intended for children, making the breaches even more serious. On December 12, the court formally found that City Beach had contravened Australian Consumer Law by selling consumer novelty products that did not meet the mandatory button battery safety and information standards.
ACCC Sends a Stark Warning to All Businesses
ACCC Commissioner Luke Woodward stated the penalty sends an unequivocal message to the retail sector. "Today’s penalty sends a clear message to businesses and suppliers that failing to meet safety standards for button batteries is unacceptable and can result in serious penalties," Woodward said. He emphasised that "button batteries pose a significant risk to children, and can be fatal", vowing the watchdog would not hesitate to take strong action against non-compliant companies.
In addition to the financial penalty, the court ordered an injunction to prevent City Beach from future breaches of the standards. The retailer must also implement a comprehensive consumer law compliance program and undertake specific advertising as part of its ongoing voluntary product recall.
The Deadly Risk of Button Batteries
The ACCC's action underscores the severe dangers posed by button batteries. If swallowed, these small, powerful batteries can become lodged in a child's throat and cause catastrophic, life-altering injuries or death within hours. Insertion into ears or noses can also lead to serious harm.
In Australia, at least three children have died from inserting or ingesting button batteries, with children under five at the greatest risk. The mandatory safety standard, which came into effect in June 2022, requires secure battery compartments that children cannot easily open. The accompanying information standard mandates clear safety warnings, including advice to seek urgent medical attention if a battery is swallowed.
This record fine against a major retailer highlights the critical importance of these standards and the severe consequences for businesses that neglect their safety obligations to young consumers.
