A mobile phone retailer has recalled 2,200 mountain bikes it supplied 'free' with mobile phones, following action by the Australian Competition and Consumer Commission.
Tele Choice Pty Ltd imported the mountain bike from China and supplied it free-of-charge between February and June 2001 to customers across Australia who bought mobile phones.
The ACCC contacted Tele Choice Pty Ltd in July 2001, asking if the bike had been tested to comply with the mandatory standard for pedal bicycles. Tele Choice Pty Ltd provided the ACCC with a test report indicating that the bike failed to comply with several requirements of the mandatory standard, including labelling, seat-clamp strength, front hub retention and bell requirements. Tele Choice Pty Ltd advised that it stopped supplying the bike in early June after it became aware that it did not comply.
Tele Choice Pty Ltd instituted a voluntary consumer product safety recall to ensure that the bikes were assembled or modified to comply with the mandatory standard.
On 3 August 2001, Tele Choice Pty Ltd sent an SMS message to the mobile phones of customers whom had been supplied with the bike, asking that they not ride the bike until it was modified. Tele Choice Pty Ltd also had developed a modification kit to be used by nominated bicycle stores so recalled bicycles could be modified.
On 17 August 2001, Tele Choice Pty Ltd wrote to all customers who had acquired a bike advising them to return it to any one of several nominated bicycle stores for assembly and/or modification, at the company's expense.
On 3 September 2001, Tele Choice Pty Ltd offered the ACCC court-enforceable undertakings that it would, among other things:
- ensure that, in any future supply of bicycles, it will satisfy itself, through testing by an authorised testing agency, and modification if necessary, that such bicycles comply with the standard
- ensure that all the bicycles it has supplied to date will be assembled or modified to comply
- maintain records of the bicycles returned and modified and provide copies of such records to the ACCC;
- send follow-up recall letters to those customers who have not responded to the 17 August recall letter, offering to make alternative arrangements for the return of the bicycle, if customers live a significant distance from the stores carrying out the modifications; and
- institute a trade practices corporate compliance program so its staff are aware of their responsibilities under the consumer protection provisions of the Trade Practices Act 1974.
"This matter is possibly the first product safety matter where a supplier, as a result of ACCC action, has attempted to contact all its customers by mobile phone", ACCC Chairman, Professor Allan Fels, said today.
"The preparedness of the company to directly mail its customers recall letters is also welcome as it ensures that the safety concerns are brought to the direct attention of the people with the bike.
"Of particular importance is that the recall will be monitored, with follow-up letters being sent to those customers who have not responded to the initial recall letter.
"This case illustrates that the ACCC will move swiftly against companies found to be supplying products that do not comply with the mandatory product safety standards. It is also a warning to companies to take care when moving into products that are not normally in their sphere of business. They must ensure that if there are mandatory product safety standards for the products they intend to supply, the products do comply".