The Australian Competition and Consumer Commission has accepted a court enforceable undertaking from Hagemeyer Asia Pacific Pty Limited about the supply of pedal bicycles which did not comply with the mandatory product safety standard.
Hagemeyer is a major electrical distributor which operates the Lawrence & Hanson and Auslec stores. It supplied about 800 Lawrence & Hanson branded mountain bicycles throughout Australia between October 2005 and May 2006. Most bicycles were part of a promotional offer by Hagemeyer. Customers meeting the terms of the offer were supplied with a free bicycle.
The bicycles were supplied unassembled. They did not comply with the mandatory standard in a number of respects, in particular:
there was no warning on each bicycle that it was not designed for off-road use or stunting
there was no warning on the packaging of each bicycle recommending that it be assembled by a skilled bicycle mechanic
no bicycle was supplied with adequate instructions for its assembly, maintenance and use, and
the handbrakes were located on the wrong sides of the handlebar.
The ACCC believes the bicycles' supply was likely to have breached section 65C of the Trade Practices Act 1974. This section prohibits goods being supplied to consumers which do not meet a prescribed mandatory product standard.
Hagemeyer will:
recall the bicycles and provide customers in return with a bicycle of equivalent value and which complies with the standard
not supply bicycles which do not comply with the standard, and
implement procedures to ensure products it supplies which are subject to a mandatory product safety or information standard comply with the standard.
"The undertaking provides a fair, comprehensive solution to a problem involving the supply of promotional goods", ACCC Chairman, Mr Graeme Samuel, said today. "The goods were not a part of Hagemeyer's core business and reinforces the need generally for businesses to exercise care when dealing with consumer goods.
"This is not the first occasion where a company has failed to comply with a mandatory standard for goods supplied as promotional items, including bicycles and sunglasses.
"I take this opportunity, with warmer weather and Christmas purchases approaching, to remind consumers to specifically inquire when buying a bicycle for themselves or their children whether the bicycle complies with the standard.
"Consumer safety is of paramount importance and the ACCC will act promptly against suppliers when consumers are placed at risk through non-compliance with mandatory safety standards", he said.
