NSW-based bicycle importer and Internet retailer Easybuy.com.au Pty Ltd, which trades as Bikes Direct, has entered into enforceable undertakings with the Australian Competition and Consumer Commission to stop misleading consumers and to recall faulty bikes.
Bikes Direct advertised in television commercials broadcast through eastern Australia to be a highly competitive Internet retailer of bicycles. It has no shopfront and refers all customers to its website at www.bikesdirect.com.au. Purchases are then delivered by courier.
The ACCC alleged that in late 2001 the website misled consumers about the existence, exclusion or effect of conditions, warranties, rights or remedies they were entitled to under the Trade Practices Act 1974. It was further alleged that Bikes Direct sold imported bicycles which did not comply with the mandatory Australian consumer product safety standard.
After being approached by the ACCC, Bikes Direct acted promptly to rectify misstatements on its website about consumers' rights and warranties on its products. Bikes Direct then had all its various bicycle models tested for compliance with the mandatory safety standard and there were failures in some areas, though none were major structural faults. As a result, Bikes Direct will contact purchasers of these models to undertake a recall and rectification program and will offer new manuals to all past purchasers. Bikes Direct will also implement a trade practices compliance program for the next three years.
"Because Internet customers cannot personally inspect goods or services, there is a greater obligation on Internet traders to ensure that their website is accurate", ACCC Chairman, Professor Allan Fels, said today. "This is especially so when that website is the only source of information on those goods or services.
"Importers should also note that they have a high onus to be vigilant in ensuring that goods they import comply with mandatory Australian requirements such as consumer safety standards. It turned out that in this instance the defects were not life threatening but the importer was not to know that at the time".
Further information
Professor Allan Fels, Chairman, pager (02) 6285 6170
Ms Lin Enright, Director, Public Relations, (02) 6243 1108 or (0414) 613 520
Mr Max Slee, Assistant Director (SA), ACCC Adelaide, (08) 8213 3455
