The court orders follow Australian Competition and Consumer Commission action taken against the online electronics retailer and its director last July, alleging conduct in contravention of the Trade Practices Act 1974.
Justice Rares made the orders declaring that Ozdirect accepted payment from consumers for goods it knew, or ought reasonably to have known, it would not be able to supply within a reasonable time. In his judgment, Justice Rares noted that Ozdirect had accepted orders and payments from a significant number of customers whilst it was on credit hold with its suppliers.
The court also declared that Ozdirect had made misrepresentations to consumers, including about the availability and likely delivery times of items advertised for sale, as well as the reasons for the delay in delivery of goods.
In his judgment, in relation to these misrepresentations, Justice Rares said: "Obviously such conduct is commercially unacceptable as well as being misleading or deceptive," and later noted that "such dishonest conduct cannot be permitted or encouraged."
The court also found that Ozdirect had made a number of misleading statements about consumer rights, including that consumers who wished to seek a refund for faulty goods had only three days to make a claim and would only be entitled to a refund by way of a credit note. Ozdirect and Mr Albright did not attend the hearing, which was held in December last year.
Justice Rares found that Ozdirect's conduct was misleading or deceptive and contravened sections 52, 53(g) and 58 of the Act, and that Mr Albright was knowingly concerned in that conduct.
