ACCC accepts undertaking over breach of bicycle standard
The Australian Competition and Consumer Commission has accepted court enforceable undertakings from Dirt Works Australia Pty Limited after it acknowledged supplying bicycles that did not comply with the mandatory standard for pedal bicycles.
Between April 2007 and April 2008 Dirt Works, a wholesaler of bicycles, supplied to retailers 115 Surly Steamroller bicycles which did not have a back brake and also, in some instances, did not have reflectors and a bell – all breaches of the standard.
Dirt Works also supplied those bicycles and a further 190 Surly Steamroller bicycles between May 2008 and June 2009 with a manual which did not comply with the standard. Also, the packaging of the bicycles did not have printed on it certain information and a warning regarding their assembly, as required by the standard.
The ACCC was concerned that by supplying the bicycles Dirt Works had engaged in conduct in contravention of section 65C of the Trade Practices Act 1974. This section prohibits a corporation in trade or commerce from supplying certain bicycles that do not comply with the mandatory standard.
In response, Dirt Works wrote to its retail customers to whom it supplied the bicycles advising them of the bicycles' failure to comply with the standard and requesting that they cease selling stock until they complied with the standard.
Dirt Works has provided court enforceable undertakings not to supply any Surly Steamroller bicycles unless they comply with the mandatory standard and to implement a trade practices law compliance program.
Dirt Works has also provided court enforceable undertakings which are designed to have consumers who purchased the bicycles:
- made aware that their bicycles failed to comply with the standard
- provided with the opportunity to have their bicycles fitted with a back brake, reflectors and a bell free of charge if they were not supplied with any of those items when they purchased their bicycle, and
- supplied with a manual which complies with the standard.
"The bicycles supplied by Dirt Works were fixed-gear bicycles," ACCC deputy chairman, Peter Kell, said today. "Fixed-gear bicycles only have one gear and do not have the ability to coast. Fixed-gear bicycles are used for competition track cycling in a velodrome and are not fitted with brakes when used for this purpose. However, there has been a growing trend in people riding fixed-gear bicycles on the road."
"Suppliers need to be aware that where fixed-gear bicycles are not designed, promoted and supplied primarily for use in competition, as was the case with the Surly Steamroller bicycles supplied by Dirt Works, they must comply with the mandatory standard for bicycles."
Ms Lin Enright, Director, Media Unit, 0414 613 520
Release # NR 248/09
Infocentre 1300 302 502