Novelty toy supplier MDI International Pty Ltd (MDI) and the owner and operator of Timezone, Kingpin and Zone Bowling, TEEG Australia Pty Ltd (TEEG), have each paid $49,500 in penalties after the ACCC issued them with infringement notices for alleged breaches of the Australian Consumer Law, by failing to comply with the testing requirements of the button battery safety standard.
The ACCC issued three infringement notices to each company in relation to the supply of three types of novelty toy products containing button batteries: the World’s Smallest Alarm Clock, the Pocket Fart Gun, and the Sonic Spinner.
These products were available to be redeemed as prizes by consumers at TEEG venues, including Timezone, using points accumulated through games played at the venues.
The infringement notices were issued to MDI and TEEG for allegedly failing to adequately test the toys prior to supply, as required by the button battery safety standard. Between July 2022 and June 2023, MDI supplied TEEG with approximately 10,000 units of the products without completing all required testing prior to supply. TEEG then on-supplied approximately 5,000 of the products to consumers.
“Button batteries are incredibly dangerous for young children and tragically in some cases have led to serious injuries or death when swallowed, inserted or ingested,” ACCC Acting Chair Catriona Lowe said.
“We encourage consumers to check for unsafe button battery products in their homes and take steps to secure them to keep them safe for young children.”
MDI recalled the World’s Smallest Alarm Clock in February 2024, and TEEG withdrew the products from sale in mid-2023 and recalled the Pocket Fart Gun and the Sonic Spinner in April 2024 following concerns raised by the ACCC.
Whilst some testing was undertaken prior to supply, it was insufficient as it did not include testing to ensure that the battery did not release. The products have all since been tested, and these tests indicated that they comply with the requirements of the safety standard.
“These alleged failures to test according to the button battery safety standard are troubling, as consumers would expect all mandatory testing to have been done before the novelty toy prizes were supplied at popular arcade venues across the country to young children.”
“The ACCC expects manufacturers and suppliers to have robust compliance processes in place for button batteries given the risks they pose to vulnerable consumers,” Ms Lowe said.
Both MDI and TEEG have taken steps to improve compliance, including by formalising button battery compliance policies and processes.
| World's Smallest Alarm Clock | Pocket Fart Gun | Sonic Spinner |
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ACCC guidance for businesses and consumers
Button batteries are small, round and shiny and can be appealing to young children to swallow. When ingested, a chemical reaction occurs that can have catastrophic outcomes, including serious injury to vital organs or death.
If swallowed, a button battery can cause catastrophic injuries in as little as two hours.
If you think a child has swallowed or inserted a button battery, contact the 24/7 Poisons Information Centre on 13 11 26 for fast, expert advice. Prompt action is critical, do not wait for symptoms to develop. Serious injury can occur in as little as two hours and the results can be fatal.
The ACCC strongly encourages consumers to report product safety incidents to the supplier and to report product safety concerns or near misses to the ACCC at the Product Safety Australia website. We also encourage consumers to check the list of recalled products on the Product Safety website.
The ACCC has published a fact sheet and guide for businesses on the mandatory standards to assist businesses with meeting their obligations.
Background
MDI is a national wholesale distributor of gifts, toys, novelty products and homewares based in Queensland. TEEG owns and operates 84 family entertainment centres in Australia, including Kingpin, Timezone and Zone Bowling.
MDI and TEEG have each paid penalties totalling $49,500 after the ACCC issued three infringement notices to each for alleged contraventions of section 106(1) of the Australian Consumer Law.
The infringement notices are for alleged non-compliance with the Consumer Goods (Products Containing Button/Coin Batteries) Safety Standard, which came into effect on 22 June 2022.
Note to editors
Four mandatory button battery standards operate in Australia to reduce the risk of death and injury associated with their use.
The safety standards include requirements for child safe packaging and secure battery compartments. The information standards require warning information and emergency advice to be displayed on packaging and batteries.
To demonstrate compliance with the safety standards, businesses must test a representative sample of products containing button batteries and button battery packaging to applicable standards before supply to a consumer. This cannot be assessed based on a visual inspection alone. The ACCC and state and territory consumer protection agencies may request test reports as proof of compliance.
The ACCC consulted and engaged extensively with industry during the 18-month transition period before the standards became mandatory, including working with businesses to explain the changes that would be required to comply with the new standards.
Consumer product safety issues for young children with a focus on products containing button batteries was a 2023/24 compliance and enforcement priority for the ACCC. Product safety and vulnerable consumers are enduring priorities.
In May 2023, the Reject Shop and Dusk paid a total of nearly $240,000 in penalties after the ACCC issued infringement notices for alleged failure to comply with mandatory product safety and information standards in Halloween novelty products containing button batteries.
In June 2023, the ACCC, in collaboration with state and territory consumer protection regulators, announced the outcome of market surveillance of 400 businesses and 8 online platforms which identified a concerning level of non-compliance with the information standards, and to a lesser extent with the safety standards.
In October 2023, Tesla Motors Australia Pty Ltd paid penalties totalling $155,460 after the ACCC issued 10 infringement notices for alleged contraventions of the Australian Consumer Law in relation to the supply of 3 types of car key fobs and 2 types of illuminating door sills that allegedly did not comply with the safety and information standards.
In December 2023 Repco, Supercheap Auto and Innovative Mechatronics Group paid penalties totalling $119,280 after the ACCC issued them with infringement notices for supplying aftermarket car key remotes that allegedly did not comply with the information standards.