The Australian Competition and Consumer Commission has obtained interim injunctions from the Federal Court against online retailer Ozdirect, that will prevent the retailer accepting payments for goods it knows it won’t be able to supply in a reasonable time.
The ACCC alleges Ozdirect breached the Trade Practices Act when it accepted payment from consumers for goods when the company was aware, or should have been aware, that it could not supply the goods in a reasonable time.
The watchdog also alleges that Ozdirect misled consumers about the availability and likely delivery times of certain items and about consumers’ warranty and refund rights.
The “interlocutory injunctions” were made in the Federal Court in Sydney, with the consent of both parties.
The injunctions stop Ozdirect from “accepting payment for goods when there are reasonable grounds of which the company is aware, or should be aware, that it could not provide supply in a reasonable time”. The court has also restrained the company from making misleading representations to consumers about the availability of goods on its sites and about refunds.
But the case is not over. The ACCC wants final orders against Ozdirect, including declarations that Ozdirect’s conduct contravened the Trade Practices Act and that the company’s director, Paul Albright was “knowingly concerned” in the conduct.
The ACCC also wants an order that Ozdirect implement a trade practices law compliance program and costs.
The parties have been ordered to attend mediation on or before 27 August.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
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