The Australian Competition and Consumer Commission (ACCC) has launched legal action in the Federal Court against OzDirect Online Brands and its director, Paul Albright, for allegedly deceiving customers.
The online retailer stocks a wide range of tech brands, sells direct to the public and claims its products ”are supplied directly from the manufacturers' warehouse - no middlemen”.
It stands accused of knowingly breaking sections 52, 53(g) and 58 of the Trade Practices Act 1974. These violations include falsely claiming to have stock and accepting payment from customers while intending not to supply the goods.
The site claims to have more than 20,000 satisfied customers across seven countries. Brands advertised include HP, Seagate, Microsoft, Symantec, AMD, IBM, Kingston and Cisco.
But, according to a Seagate spokesperson, all the vendor’s products in Australia are sold exclusively through the channel. Microsoft, AMD and Kingston were all contacted by ARN and also expressed doubt in the claims. All confirmed their lack of involvement with OzDirect.
A popular online price-checking website MyShopping.com.au, featured a long series of angry customers that claimed to have paid for products that had not been received.
OzDirect had not responded to comment by time of publication.