Australia's Competition and Consumer Commission (ACCC) is telling parents to keep Apple's AirTags away from children because of safety concerns.
The US tech giant's rival to Tile and Samsung's SmartTags has been available since early May and the ACCC is worried about the security of the battery inside, particularly how easy it could be removed.
They are also worried that the battery lid isn't always secure on closing and the distinctive sound that plays when the AirTag's lid is closed suggests it may be secure when it's not.
AirTags are powered by a lithium coin 'button' cell battery which is dangerous for children under six years of age, says Starship Children's Hospital in Auckland.
If swallowed the battery can get stuck in the child's throat, causing a chemical reaction that leads to a hole being burned in as little as two hours, causing serious injury or death.
Around 20 children are taken to Starship each year because of button battery-related injuries or suspicions they've swallowed one.
Aotearoa's National Poisons Centre receives around 29 calls each year about children swallowing them or getting them stuck in their ears and noses, which can also lead to significant injuries.
Three children in Australia have died and 44 have been seriously injured from incidents involving button batteries, reports the ACCC.
"We note that Apple has now added a warning label to the AirTags packaging," ACCC deputy chair Delia Rickard said.
That was in response to retail chain Officeworks, which has 160 stores across Australia, withdrawing AirTags from sale due to safety concerns.
"However, this alone does not address our fundamental concerns about children being able to access the button batteries in these devices," Rickard continued.
"We are also liaising with our international counterparts on the safety of Apple AirTags, and at least one overseas public safety regulator is also examining the safety of this product at this stage."
Apple has stated the AirTag is designed to meet international child safety standards by requiring a two-step push-and-turn mechanism to access the user-replaceable battery.
It also says it is "working to ensure that [its] products will meet or exceed new standards, including those for package labelling, well ahead of the timeline required".
The ACCC is also looking at button battery safety in other similar products in the Australian market, it said.