Stores Online International Inc will offer refunds to some customers who bought its website packages following settlement of an Australian Competition and Consumer Commission legal action.
The refunds will come from $658,251.53, previously frozen under a Federal Court order.
In addition, StoresOnline:
- has undertaken not to make false or misleading statements about its website packages nor make statements about the future performance of the packages without having reasonable grounds for so doing
- will give future customers a three-day 'cooling off' period, and
- will contribute to the ACCC's legal costs.
The settlement of the proceedings was entered into by StoresOnline upon the basis that it did not admit that it had engaged in any conduct in breach of the Trade Practices Act 1974. Stores Online International Inc and StoresOnline Inc are Utah, USA based companies that offer packages of websites to customers to establish e-commerce businesses.
"In reaching the settlement, the ACCC was aware of the importance of getting a practical solution for StoresOnline customers who believe that they have been misled into buying the products", ACCC Chairman, Mr Graeme Samuel, said today.
"Of primary importance was how to obtain compensation on a timely basis. The ACCC believes that this settlement allows disaffected StoresOnline customers to obtain quick redress. Also, it prevents representations which may mislead future StoresOnline customers from being made".
Buyers of the StoresOnline website and software package who want a refund should contact the ACCC urgently by 9 June 2006 for instructions about seeking a refund.
"This deadline will be strictly adhered to under the settlement agreement", Mr Samuel said. "Purchasers who do not contact the ACCC by 9 June 2006 will not eligible to take part in the refund scheme".
Buyers have 30 days from the date of the ACCC's letter to provide a statutory declaration that the StoresOnline website and software package is defective or that they bought the package because of a representation of the sort alleged in the ACCC's Amended Statement of Claim (as detailed in the background to this news release) stating which representation they relied on.
Statutory declarations not received within 30 days of the date of the letter will not be considered for a refund.
The ACCC has discontinued its proceedings against StoresOnline's Australian representative, Mr Brett Perkins.
Consumers should contact the ACCC's Infocentre on 1300 302 502 for further information.