The Australian Competition and Consumer Commission (ACCC) is taking legal action against Cotton On Kids and Cotton On Clothing.

It is alleged that between September 2010 and March 2011 Cotton On sold children’s nightdresses and pyjamas that were made from fabric which exceeded the level of flammability allowed under mandatory consumer product safety standards for children’s nightwear.

“Children’s nightwear that does not comply with the mandatory standard increases the risk of fire hazards. This means that children wearing them are at higher risk of severe burns and death if the nightwear catches fire,” the ACCC said in a statement.

It is also alleged that between October 2010 and March 2011 Cotton On sold children’s pyjamas that had attached an appliqué with some unstitched fabric wider than allowed under the standard.

“Loose-fitting flammable clothing increases the risk of burns if it catches fire,” the ACCC said.

The ACCC also alleges that by offering the nightdresses and pyjamas for sale with a “low fire danger” label attached Cotton On misrepresented that the garments were made from fabric of a low fire danger type or were otherwise styled to reduce fire danger.

The ACCC and Cotton On will meet in the Federal Court on 24 November 2011.