Elon Musk’s electric vehicle company, Tesla, has been fined $155,460 for failing to comply with mandatory safety standards for products using button batteries, the Australian Competition and Consumer Commission has said.
The fine – just over the cost of two Tesla Model 3 vehicles – was levied by the regulator over Tesla allegedly failing to conduct the required safety tests for three of its key fob models and two of its illuminated door sill models. It was also fined for allegedly failing to provide the mandatory safety warnings on these products, which have been required since June last year.
The button and coin battery standards stipulate that the batteries must be secure in the product they are powering, and if replaceable, they must be in a secure battery compartment that is resistant to being opened by young children.
The ACCC said children can be attracted to button batteries and swallow them or insert them into their nostrils, which can cause chemical burns and potentially injure vital organs. There have been three reported deaths of children in Australia from inserting or ingesting button batteries.
“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,” the ACCC’s deputy chair, Catriona Lowe, said.
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“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.”
In the period between 22 June 2022, and 30 May 2023, Tesla sold 952 of the various devices for its cars. Tesla removed the products from sale when the ACCC began investigating, and has since found the Model 3/Y and Model X key fobs to comply with the standards. The ACCC said testing is continuing for the other products, and supply will recommence once the test results are obtained.
The ACCC said some of the fobs were shaped like a car, which would have likely increased their appeal to small children.
Guardian Australia has sought comment from Tesla.
The regulator said Tesla customers concerned about their products should contact the company.