Dusk Group (ASX:DSK) allegedly sold more than 66,000 button battery products between May 2023 and December 2024 that did not comply with mandatory safety and information standards, the Australian Competition and Consumer Commission (ACCC) said Wednesday as it launched Federal Court proceedings against the company.

The ACCC claims that Dusk breached both Australian consumer law and a court-enforceable undertaking it provided to the regulator in April 2023.

The products allegedly in violation of the standards include candles, diffusers, tealights, snow globes, and other LED products, posing the risk of injury or death if the button batteries were swallowed by children, the ACCC said.

It alleges that 25 of the product lines sold were not tested before being supplied to consumers, while four product lines did not include required safety warnings.

The regulator is seeking declarations, penalties, costs, and an order requiring Dusk to pay an amount that reflects profits from the alleged breaches.

In response to the court proceedings, Dusk Group said it takes product safety seriously and has cooperated fully with the ACCC's investigation. The company added that it has not identified any reports of harm to customers so far.

The company's shares fell 6% in recent Wednesday trade.