Aussie beachwear retailer City Beach loses appeal over $14m fine for selling deadly button battery Croc accessories

Australian beachwear retailer City Beach has been ordered to pay a $14 million fine imposed against it for selling Croc accessories that contained deadly button batteries, after the company failed to get the penalty thrown out in court.

The Federal Court on Wednesday dismissed an appeal against the “excessive” fine after City Beach was penalised by the Australian Competition and Consumer Commission (ACCC) for selling non-compliant button battery products in December last year.

The banned products, which were marketed or intended for children, included toys, digital notepads, key rings and Croc shoes Jibbitz accessories.

The consumer watchdog warned the button batteries were dangerous and posed a significant risk to young children if swallowed or inserted.

Three children have died as a result of swallowing such button batteries in Australia alone.

ACCC Commissioner Luke Woodward said the Federal Court confirmed a significant penalty was appropriate to deter City Beach and other traders from failing to comply with the mandatory button battery standards.

“This highlights the importance of businesses implementing systems to ensure they are complying with the button battery standards, which are intended to protect the safety of children,” he said.

A judge found between June 2022 and October 2024, City Beach sold more than 60 products containing button batteries on more than 54,000 occasions

The court found the retailer did not comply with the button battery safety and/or information standards, and imposed a penalty of $14m in December last year.

City Beach admitted this conduct breached the Australian Consumer Law.

The Full Court said there was a heightened need to deter corporations from ever selling products that were very dangerous and contravened safety standards and ruled the $14m penalty still applied.

Mr Woodward said businesses were on notice that they must take button battery safety seriously and implement effective systems to ensure compliance with the mandatory standards, or they will risk substantial penalties for noncompliance.