Electric car manufacturer Tesla Motors Australia Pty Ltd has paid a total of $155,460 in penalties after being issued with ten infringement notices by the Australian Competition and Consumer Commission (ACCC). The notices were in response to allegations that Tesla failed to comply with mandatory safety standards for products using button batteries, which is a breach of the Australian Consumer Law.
Alleged Safety Standard Failures
The ACCC’s claims against Tesla include allegations that the company did not conduct the required safety tests before supplying three of its key fob models and two illuminated door sill models. Furthermore, Tesla is said to have neglected to provide mandatory safety warnings on these products as mandated by the safety standard.
Button Battery Safety Standards
Australia introduced mandatory product safety and information standards for products containing button batteries in June 2022. These standards were established to mitigate the significant injuries and fatalities associated with button batteries in Australia and globally. These small batteries can pose severe risks, especially to children who may ingest or insert them. In such cases, a chemical reaction can occur, potentially causing burns to tissues and serious injuries to vital organs.
Notably, three children in Australia have lost their lives after swallowing or inserting button batteries.
ACCC Deputy Chair’s Perspective
ACCC Deputy Chair Catriona Lowe expressed the critical importance of complying with these standards, stating, “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.”
Infringement Notices Details
The ten infringement notices issued to Tesla relate to three key fob models and two illuminated door sill models. Tesla sold 952 of these items between June 22, 2022, and May 30, 2023.
The specific models involved are:
- Model 3/Y key fobs
- Model X key fobs
- Model S key fobs
- Model 3 illuminated door sills
- Model S illuminated door sills
In response to the ACCC’s investigation, Tesla has halted the sale of these products and initiated testing. While the Model 3/Y and Model X key fobs have been found to be compliant, testing for the other products is ongoing. Tesla will only resume supply if they pass the mandatory standards.
Enhancing Safety Compliance
Tesla has cooperated with the ACCC investigation and committed to improving its compliance with button battery standards. The company will implement and maintain a complaint handling system, conduct regular compliance training, and conduct an annual compliance review.
Button Battery Safety Advisory
Button batteries can cause catastrophic injuries if swallowed or inserted and may lead to fatalities within hours. If you suspect a child has ingested or inserted a button battery, contact the 24/7 Poisons Information Centre at 13 11 26 for urgent, expert advice. Prompt action is crucial, as serious injury can occur within a short timeframe.
Consumers are also urged to inspect their homes for products containing unsafe button batteries, particularly those purchased before the standards took effect in June 2022. Car key fobs, commonly found in households, can be accessible to young children.
The ACCC encourages consumers to report product safety incidents to suppliers and to share product safety concerns through the Product Safety Australia website. A list of recalled products is also available on the Product Safety website.
To assist businesses in complying with their obligations, the ACCC has published a fact sheet and guide on the mandatory standards.
