Bikes Direct is an importer and Internet retailer of bicycles. It displayed its range of bicycles on its website and made disclaimers about relying on the accuracy of this information. There were also disclaimers about the extent of warranties offered. These disclaimers were void by the action of section 68 of the Trade Practices Act 1974 (the Act) and also misled customers about their warranty rights, contrary to section 53(g) of the Act.
After the ACCC raised the question of compliance with the requirements of the mandatory Consumer Product Safety Standard for pedal bicycles, Bikes Direct had the bicycles tested by a NATA approved laboratory, which found that the bicycles did not comply with the mandatory standard, although none of the areas of non-compliance were likely to result in injury to customers. Bikes Direct undertook to issue a new manual to all purchasers and to institute a recall and rectification program. Bikes Direct will also institute a trade practices compliance program.
