Fri 29 May 2026 at 9:03amFri 29 May 2026 at 9:03amThe Unicorn Toddler Backpacks were designed for children and included a detachable light-up unicorn plush toy containing button batteries. (Supplied: ACCC)The consumer watchdog is suing Amazon alleging it sold kids unicorn backpacks on its online marketplace which failed to comply with mandatory button battery safety warnings.It is the first Federal court case taken by the ACCC against an online marketplace over alleged non-compliance with product safety standards.Button batteries pose a serious health risk for children if they're swallowed or inserted and can cause life-threatening injuries or death.Amazon sold a product called Unicorn Toddler Backpacks which were marketed towards children and featured a "detachable light-up unicorn plush toy containing button batteries," the ACCC said.According to the lawsuit Amazon had backpacks in Australian fulfilment centres between June 22 and November 1, 2022 but they failed to include warning labels allegedly breaking Australian Consumer law.The bags were designed for children and included a detachable light-up unicorn plush toy containing button batteries. (Supplied: ACCC)Forty-one backpacks were purchased by Australian customers through Amazon’s Australian website and 267 backpacks were in their fulfilment centres at 1 November 2022."Many Australian consumers now shop on online marketplaces. That's why it is important that consumers have confidence and trust in digital markets, and for the ACCC to take this action, the first of its kind to come before the Federal Court," ACCC Deputy Chair Catriona Lowe said."Button batteries pose a serious hazard for young children. If swallowed or inserted, they can cause severe internal burns and injury, and in some cases death. These mandatory warnings are there to help keep children safe and businesses must get them right."This is the ACCC's first Federal Court case against an online marketplace alleging non-compliance with safety standards. (Supplied: ACCC)Doctors, kids safety advocates and affected families have sounded the alarm about the risk posed by button batteries in recent years.Children who are five and younger face the greatest risk and are more likely to put small objections into mouths, ears and noses.Amazon has been contacted for comment.