e-commerce marketing company, StoresOnline, is in trouble for failing to comply with Federal Court undertakings that resulted from action initiated by the Australian Competition and Consumers Commission (ACCC) on June 1, 2005.
The court orders were made on April 24, 2006, after the company – under StoresOnline International and StoresOnline Inc – was found to have breached the Trade Practices Act for misleading and deceptive marketing of its business e-commerce software packages . The Federal Court last week declared that StoresOnline failed to comply with the undertaking due to a number of factors, including not advising the company’s online software buyers of the three-day cooling off period and not informing the ACCC of the nature and content of testimonials used in marketing presentations.
As a result, the court has barred StoresOnline from breaching the original undertaking and conducting unauthorised presentations for the next two years.
The company is also in trouble over allegedly misleading customers about the price of its offerings at presentations. That aspect of the case will be heard in the Federal Court tomorrow.