Button battery safety - Cost for suppliers of consumer goods that use/contain button or coin cell batteries

Overview

On 19 March 2020 the ACCC issued a consultation paper that outlined regulatory options to address button battery safety. Stakeholder feedback indicated that the proposed regulatory options would result in significant costs for industry.

In response to stakeholder feedback, the ACCC has modified certain proposed requirements, including those that relate to secure battery compartment and warnings proposals (Options 1 and 3 from the consultation paper). Further, the ACCC intends to recommend a 24 month transition period for design/performance related requirements to products and 12 months for warning requirements.

This survey seeks information from suppliers of products that use/contain button batteries about costs associated with implementing a revised set of requirements to address button battery safety. The modifications to the proposed requirements set out in the consultation paper are briefly outlined below.

Secure battery compartment requirement

The ACCC’s consultation paper outlined a secure battery compartment proposal (Option 1) that:

• consumer goods that use button batteries that are intended to be replaced would be required to have a secure battery compartment such that batteries are only accessible with the use of a tool
• consumer goods that use button batteries that are not intended for user removal or replacement would require batteries to be fully secured inside the product
• all consumer goods that use button batteries would be required to incorporate mechanism to prevent removal of the battery by children under normal use or foreseeable misuse.

Option 1 restricted certain battery securement methods, namely it (1) excluded an access mechanism whereby at least two independent and simultaneous movements are needed to open the battery compartment and (2) excluded the use of a coin as a tool to open the battery compartment.

The ACCC is now considering adjustments to Option 1 such that this requirement is outcomes-based and focuses on the overall security of the battery compartment rather than specific access mechanisms. These adjustments would minimise deviation from international standards by allowing the use of two independent and simultaneous movements as an access mechanism and the use of a coin as a tool to open battery compartments.

We are now seeking information from industry about costs associated with implementing an outcomes-based secure battery compartment requirement that would require that battery compartments prevent child accessibility and do not release the batteries during normal and foreseeable use and abuse conditions. Compliance testing would be required for a sample of products to ensure battery compartment security over the lifecycle of the product.

Warning requirement

The ACCC’s consultation paper (Option 3) proposed that warnings be provided as follows:

• on the packaging and instructions for all button batteries available for sale (regardless of their size or chemistry)
• on the product (where practicable), packaging and instructions of consumer goods that use button batteries
• at point of sale (and prior to purchase) for all button batteries and consumer goods that use button batteries that are sold online
• at point of sale (and prior to purchase) for unpackaged consumer goods that use button batteries that are supplied to consumers.

The ACCC’s consultation paper (Option 3) also proposed specific warning symbols and text, including the Australian Poisons Information Centre hotline to be required on button battery packaging.

Stakeholder feedback to the consultation paper indicated that the proposed warnings would result in significant cost increases and may result in the removal of certain products from Australian markets.

We are now seeking information on the costs associated with:

• a warning content requirement that allows the use of an internationally recognised warning symbol and text that directs consumers to seek medical attention immediately in the case they suspect that a button battery might have been swallowed or placed inside any part of the body (Australian Poisons Information Centre contact information not required)
•  a warning location requirement that requires warnings on consumer goods that use/contain lithium coin cell batteries on or close to the battery compartment of the product (where applicable)
• a warning location requirement that requires warnings on the front panel of packaging of consumer goods that use/contain button batteries (regardless of the chemistry of the battery).

Transition period

The ACCC now proposes the following transition periods would apply from the date a mandatory standard commences to allow for implementation of the requirements:

• Secure battery compartment requirements: 24 months
• Warning requirements: 12 months

We would like to obtain specific information about the likely costs to your business in relation to the introduction of these modified proposals.

Who should complete this survey

This survey is intended for manufacturers and suppliers of products that use/contain button or coin cell batteries, and for industry associations that represent such firms.

A separate survey for suppliers and manufacturers of button and coin cell batteries (sold separately) has been circulated.

If this is also relevant to you, please complete the Costs for suppliers of button or coin cell batteries (sold separately) survey.

These surveys will remain open until 26 August 2020.

Confidentiality

Your survey response will be treated as confidential and will not be attributed to you publicly. The ACCC is committed to treating confidential information responsibly and in accordance with the law. For further information on the ACCC’s treatment of confidential information, please refer to the ACCC/AER Information Policy publication.