Hungry Jack’s Pays $150k Penalty for Alleged Breach of Button Battery Safety Standards

Published: 6 May 2025

Based on an ACCC media release

Source: ACCC

Hungry Jack’s Pty Ltd, one of Australia's largest fast-food franchises, has paid $150,240 in penalties after the ACCC issued it with eight infringement notices for allegedly breaching Australia’s mandatory button battery information standard.

The penalties relate to a Garfield-branded toy distributed with Hungry Jack’s children’s meals in May 2024, which contained button batteries but failed to include required warnings and emergency safety information.

Over 27,000 units of the Garfield toy were supplied to families nationwide between 20 and 30 May 2024.

What Went Wrong?

Although the Garfield toy reportedly complied with the technical safety requirements of the button battery safety standard (e.g., child-resistant battery compartments), the packaging and instructions failed to include mandatory warnings alerting consumers to the risks of button batteries.

Under the Australian Consumer Law, all products containing button batteries must comply with both safety and information standards. These include:

• Clear warnings on packaging about button battery hazards

• Instructions advising what to do in case of ingestion or exposure

• Secure battery compartments (to prevent access by children)

The Dangers of Button Batteries

Button batteries are small, coin-sized batteries found in toys, remotes, key fobs, and many novelty items. If swallowed, they can cause life-threatening injuries or death—and damage can begin within two hours.

In Australia, three children have died, and at least one child per month is injured by button battery incidents.

The ACCC has repeatedly emphasised that non-compliance with safety or information standards is unacceptable, particularly where young children are at risk.

“The ACCC continues to see non-compliant products on the market which pose unacceptable safety risks… We take non-compliance with these important standards seriously,” said ACCC Deputy Chair Catriona Lowe.

Hungry Jack’s Response and Undertaking

Hungry Jack’s has admitted that the Garfield toy likely failed to meet the mandatory information standard and provided the ACCC with a court-enforceable undertaking. As part of this, the company has agreed to:

• Implement a compliance program to minimise future ACL breaches

• Recall the affected toys and offer customers a non-battery replacement

• Improve internal checks and controls on future promotional toy campaigns

For Franchises and Suppliers: Key Takeaways

While this penalty may not seem substantial for a major franchise, it highlights a critical issue for franchisors, retailers, and manufacturers alike: non-compliance with product safety standards—especially involving children—carries serious risks.

Lessons for franchisors and suppliers:

• Don’t assume safety = full compliance. Even if a product is technically safe, failure to include legally required warnings can breach ACL obligations.

• Review supply chains. Promotional toys or bundled items should be checked at every stage — especially where international sourcing or short deadlines are involved.

• Mandatory reporting applies. If a product causes, or may have caused, serious injury or illness, suppliers must report the incident to the ACCC within 2 days.

• Invest in compliance training. Hungry Jack’s has now committed to a compliance program — a reminder to other national systems to train marketing and product teams on ACL standards.

What to Do If You Have the Garfield Toy

Hungry Jack’s has initiated a nationwide recall of the Garfield toy. Families can return the toy to their nearest store and receive a non-battery replacement toy.

If you suspect a child has swallowed a button battery, immediate action is critical:

• Call 000 if the child is in distress

• Call the Poisons Information Centre on 13 11 26 for urgent advice

Final Word from Bane Legal Services

This incident is a timely reminder that ACL compliance goes beyond product design—it includes packaging, labelling, and warnings. If your business sells or imports battery-powered goods, including toys, novelty items or gadgets, it’s essential to ensure full compliance with both safety and information standards.

While Bane Legal Services does not provide legal advice, we can connect your business with a qualified Australian product safety or commercial lawyer to:

• Audit product lines for regulatory compliance

• Assist in responding to ACCC notices or recall issues

• Develop compliance systems to reduce future risk

Disclaimer: This blog post is for general information purposes only. Bane Legal Services is not a law firm and does not provide legal advice. For advice on product safety, compliance or ACCC investigations, we can refer you to an experienced Australian lawyer.