ACCC fines Tesla for breaching consumer law
Electric car maker slapped with $155,000 fine for improper labelling of button battery hazardsElectric vehicle brand Tesla has been fined by Australia’s consumer watchdog for failing to comply with mandatory safety standards for products powered by button batteries.
By not properly labelling its key fobs, which contain button batteries that pose a potential hazard if swallowed by young children, Tesla came under scrutiny from the Australian Competition and Consumer Commission (ACCC).
The ACCC alleged the key fobs of the Tesla Model 3, Model Y, Model X and Model S were in contravention of Australian Consumer Law and as such Tesla Motors Australia Pty Ltd was fined $155,460.
Tesla has subsequently co-operated with the ACCC to sort out the breaches, including a lack of warning labels.“Since the ACCC started investigating the issue, Tesla has removed the products from sale and started testing them. The Model 3/Y and Model X key fobs have subsequently been found to comply,” said the ACCC in a press statement.
“Testing for the other products is continuing, and Tesla will only recommence supply once test results are obtained, confirming they are compliant with the mandatory standards,” said the regulator.
In mid-2022, Australia introduced a world-first product safety and labelling standard for button batteries, following numerous injuries and the death of three children due to the ingestion of button batteries.
If swallowed, button batteries pose a choking hazard and can cause potentially fatal chemical burns of the digestive tract.
“Button batteries can be lethal for young children and the Australian mandatory standards are designed to reduce the risk of injury through testing of the safety of products containing them before they are sold, and explicit warnings on the packaging of the products,” said ACCC Deputy Chair, Catriona Lowe.
“Any failure to test these products before they are sold poses an unacceptable risk to children. We expect all companies, large and small, to comply with the mandatory button battery standards to ensure children are protected from the dangers of button batteries.”
According to the ACCC, almost 1000 Tesla vehicles sold in Australia between June 22, 2022 and May 30 this year are affected.
Tesla is not the first car-maker to fall foul of the stringent button battery regulations, with Mitsubishi recalling more than 7000 vehicles in March 2023 for the same reason.
Related: Recall wrap: Mitsubishi key fobs pose choking hazard
Related: Car key fobs targeted under new safety laws
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