Online retailer Overstockoutlet recalls freestyle bicycles after ACCC action

Bicycles promoted over the internet which contravened product safety standards have been withdrawn after intervention from the Australian Competition and Consumer Commission.

Overstockoutlet Pty Ltd has recalled its Freestyle 51cm steel frame bicycles and offered court enforceable undertakings to the ACCC.

Independent testing commissioned by the ACCC revealed the bicycles failed to stop in the required distance and did not have the required safety warnings.

The ACCC was also concerned Overstockoutlet's description on its website promoting the bicycle as suitable for freestyle and trick riding when the bicycle was labelled as being unsuitable for stunt riding was misleading and presented a danger to consumers.

Overstockoutlet acknowledged that it has contravened the Trade Practices Act 1974 and withdrew the products from sale once advised of the test report by the ACCC.

Overstockoutlet retails a wide range of products through its online store, www.oo.com.au. The conduct was identified during a routine product safety survey, which are carried out at regular intervals by the ACCC at both physical retail outlets and online stores.

"Online retailing is becoming increasingly popular and it is important for e-commerce businesses to be conscious of their responsibilities under the Act, especially in relation to product safety matters," ACCC Chairman, Mr Graeme Samuel, said today.

"Consumers in remote areas are becoming particularly dependent on the internet. The ACCC is working hard to ensure that these consumers enjoy the same protection as in-store purchasers.

"The ACCC is vigilant and vigorous in its enforcement of the product safety provisions of the Act and will not hesitate to take action when the provisions are breached."

Overstockoutlet has undertaken:

• not to supply bicycles which do not comply with any prescribed consumer product safety standards in force at the time
• not to promote a bicycle as being suitable for freestyle or trick riding when it is labelled as being unsuitable for stunt riding
• to withdraw the bicycles from sale
• to conduct a product safety recall of the bicycles
• to cease to promote bicycles which do not comply with the product safety standards
• to ensure that all bicycles sold or supplied by Overstockoutlet in the future comply with the relevant standard
• to ensure that any promotion accurately portrays the capabilities of the bicycles, and
• to implement and maintain a trade practices compliance program for a period of three years from the date of the undertaking.

A copy of the Overstockoutlet undertaking will be available from the Public Registers list located at the ACCC website.