The Australian Competition and Consumer Commission filed Federal Court proceedings against Kmart on Friday, alleging the discount chain supplied nail adhesive that burned consumers’ skin and sold watches with button batteries before completing legally required safety tests. The watchdog said at least 51 shoppers reported injuries from the glue, while several analogue and digital watch models reached shelves without the compliance certificates Australian consumer law demands for products containing coin cells.
Nail glue injuries
ACCC chair Gina Cass-Gottlieb said Kmart continued to stock the adhesive even after complaints that contact caused painful skin reactions. The commission is seeking penalties and orders requiring Kmart to notify past buyers and fund independent testing. Court documents describe burns consistent with cyanoacrylate exposure when users followed package instructions for at-home manicures.
Kmart told the ABC it cooperated with the investigation and was disappointed the ACCC chose litigation over accepting remedial steps the company said it had already taken. Retail analysts noted Kmart’s beauty aisle is a high-volume category aimed at budget-conscious households, magnifying any safety lapse.
Button-battery compliance
Separate allegations cover digital and analogue watches that allegedly lacked proof of button-battery compartment security testing before supply. Australia tightened information standards after several child deaths involving swallowed coin cells, requiring suppliers to demonstrate secure compartments and warning labels.
The ACCC also accused Kmart of previously selling Bluetooth smart tags that did not meet mandatory battery disclosure rules. Those tags were recalled in 2024; Friday’s case treats the watch and glue issues as ongoing compliance failures rather than one-off labelling errors.
Why the regulator moved now
Consumer groups have pressed the ACCC to pursue large retailers with the same vigour applied to small importers. Friday’s filing lands during a parliamentary debate over the government’s broader Digital Duty of Care reforms, but the Kmart matter rests on longstanding product-safety statutes administered by the commission.
If the court agrees, Kmart could face millions of dollars in fines per contravention and be forced to establish a compliance program audited by an external lawyer. Shares in Wesfarmers, which owns Kmart, were little changed in midday Sydney trade as investors weighed whether provisions already exist for consumer claims.
What shoppers should do
The ACCC urged anyone injured by the nail glue to keep medical records and receipts while the case proceeds. Parents who bought the named watch models should check battery compartments for tool-less access and contact Kmart for refunds if seals appear loose. No injunction blocking sales was announced Friday, but the commission can seek urgent orders if it identifies models still on shelves without test reports.
Product Safety Australia, which partners with the ACCC on recalls, said it would publish any court-ordered notices on its website once a judge sets a timetable. Kmart has not said whether it will pull the glue nationwide before a hearing, leaving state consumer affairs hotlines to field calls from salon technicians who bought bulk packs for home businesses.