Online electronics retailer accused of deceptive conduct

The Australian Competition and Consumer Commission has announced that it has instituted legal proceedings against an online electronics retailer for alleged breaches of the Trade Practices Act.

According to the ACCC, legal proceedings have been instigated in the Federal Court, Sydney against Ozdirect Online Brands Pty Ltd, and its director Paul Albright.

The Ozdirect Online Brands business consists of three websites including www.ozdirect.com, www.ozdirect.com.au and www.ausbuys.com.

It is alleged that the business breaches the Trade Practices Act 1974, due to the fact that the websites accepted payments from consumers when it knew, or should have reasonably known, it would not be able to supply the purchased good within a reasonable time.

In addition to this it made misrepresentations to consumers about the availability and likely delivery times of items and consumer warranty and refund rights.

The ACCC has therefore alleged Ozdirect’s conduct was misleading or deceptive and contravened sections 52,53(g) and 58 of the Act, and Mr Albright was knowingly concerned in that conduct.

The ACCC is currently seeking orders including declarations that the company’s conduct contravened the Act and its director was knowingly concerned in the conduct; injunctions, including interim injunctions; findings of fact; an order that Ozdirect implement a trade practice compliance program; and costs.

This matter has been listed for an interlocutory hearing on July 24 2009.

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