Dusk Group Ltd (ASX:DSK) shares fell more than 9% to 68.5 cents after the Australian Competition and Consumer Commission (ACCC) launched Federal Court proceedings over alleged breaches of mandatory button battery safety standards.
The regulator alleges Dusk subsidiary Dusk Australasia supplied 66,453 non-compliant products across 29 product lines between May 17, 2023, and December 12, 2024.
The affected items included candles, diffusers, tealights, snow globes and other LED products, including Christmas, Easter and Halloween-themed homewares.
The ACCC also alleges Dusk breached a court-enforceable undertaking accepted in 2023 after the retailer supplied Halloween products that failed to meet button battery safety requirements.
Dusk previously paid $106,560 in penalties following eight infringement notices.
Dusk reports no customer harm
Dusk said it had not identified any reports of customer harm linked to the products and would continue monitoring feedback.
The company said it had cooperated fully with the regulator but would not comment further while the matter was before the court.