Kmart sold nail glue after burn complaints, ACCC alleges

Seven years of burn complaints, no warning on the bottle

The Australian Competition and Consumer Commission (ACCC) filed Federal Court proceedings against Kmart Australia Ltd, a Wesfarmers subsidiary, on 15 October 2026, alleging two separate breaches of the Australian Consumer Law: selling cosmetic nail glue without adequate burn warnings, and supplying children's watches and GPS tracking devices that did not comply with mandatory button-battery standards.^[1]

Between August 2017 and December 2024, at least 51 consumers complained to Kmart of skin burns caused by its home-brand nail glues, with at least 33 of those complaints expressly describing burns when the glue contacted fabric; some injuries required hospitalisation and skin grafts.^[2] Some complaints, including photos, were escalated internally, including to the chief executive, the ABC reported.

Kmart did not add any warning about the risk of burns on fabric contact to its nail glue packaging until December 2024.^[2] ACCC Deputy Chair Catriona Lowe said the regulator regarded the delay as serious. "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.^[1]

Button batteries: watches and Smart Tags

Between June 2022 and November 2024, Kmart supplied about 64,000 button battery powered watches, many designed for children, which the ACCC alleges were not tested before supply, as mandatory button battery standards require, to show young children could not open the battery compartment.^[1] "These watches contained button batteries, but Kmart did not test them prior to supply," Lowe said.^[1]

The proceedings also cover more than 800 Anko-branded GPS Smart Tags that the ACCC alleges did not carry all the warnings required by the mandatory button battery information standard; they were recalled in 2024 after ACCC engagement.^[1] "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," Lowe said.^[1]

The ACCC says three children in Australia have died from ingesting button batteries.^[1]

A disputed question of mandatory reporting

The ACCC alleges Kmart failed to lodge mandatory serious-injury reports within the two-day window required under the Australian Consumer Law. Kmart disputes that directly. A Kmart spokesperson said the company took its reporting obligations seriously and submitted mandatory injury reports to the ACCC about the nail glue incidents. The company also said it regretted any injury and apologised to anyone affected, maintaining that "the labelling and warnings were appropriate to prevent misuse" and that no injuries were reported for the watches or Smart Tags.^[4]

On the broader case, the spokesperson added: "We have cooperated with the ACCC throughout its investigation and are disappointed at its decision to take action on historical matters that Kmart has addressed."^[4]

Private-label retailers and the packaging liability question

The ACCC's core legal argument is that omitting a known safety risk from private-label packaging constitutes a false or misleading representation under the Australian Consumer Law, treating it as a substantive legal breach rather than a brand-management oversight.^[1] Kmart operates more than 320 stores across Australia and New Zealand and sells private-label products under brands including Anko and OXX.

For any retailer carrying own-brand goods in product categories with known hazards, cosmetics, electronics and toys among them, the case sets out the specific sequence the ACCC treats as actionable: complaints received, risk confirmed internally, warning absent from packaging, sales continuing. The ACCC is seeking penalties, declarations and costs. No penalty amount or hearing date had been listed as of 15 October 2026.^[1]