Tesla Fined Over $155,000 by Australia Over Button Batteries

Tesla has been fined $155,460 by the Australian Competition and Consumer Commission (ACCC) for failing to meet mandatory safety standards related to button batteries in some of its products. The fine is equivalent to the cost of just over two Tesla Model 3 vehicles.

The ACCC alleges that Tesla did not conduct the required safety tests for three key fob models and two illuminated door sill models. The company also allegedly failed to provide mandatory safety warnings on these products, a requirement that has been in place since June of last year, reports The Guardian.

Button and coin battery standards mandate that the batteries must be securely placed in the product they power. If replaceable, the batteries must be in a compartment that is resistant to being opened by young children.

The ACCC emphasized the risks posed by button batteries, stating that children can be attracted to them and may swallow them or insert them into their nostrils, leading to chemical burns or injury to vital organs. There have been three reported child deaths in Australia due to ingestion or insertion of button batteries.

“Button batteries can be lethal for young children, and the Australian mandatory standards are designed to reduce the risk of injury,” said Catriona Lowe, ACCC’s deputy chair. “Any failure to test these products before they are sold poses an unacceptable risk to children.”

Between June 22, 2022, and May 30, 2023, Tesla sold 952 of the devices in question. The company removed the products from sale when the ACCC began its investigation and has since found that the Model 3/Y and Model X key fobs comply with the standards.

Testing for the other products is ongoing, and they will be available for sale again once they pass the tests, according to the ACCC.