Online retailer withdraws products that contravene the trade practices Act

ACCC says online retailers need to be just as aware of their responsibilities as physical store retailers.

Online retailer Overstockoutlet. has recalled some of its bicycles and withdrawn them from sale following a notice by the Australian Competition and Consumer Commission (ACCC) that they contravened product safety standards.

The company 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 that Overstockoutlet promoted the bicycle on its website as suitable for freestyle and trick riding, when the bicycle was labelled as being unsuitable for stunt riding. The ACCC found this to be misleading and said it 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.

The notice was issued 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 in a media statement.

"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."

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

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