Container Door Limited has been fined $54,000 by the Commerce Commission, after selling unsafe bicycles.
According to the Commission, the online retailer pleaded guilty to two charges for selling bikes that didn’t meet mandatory product safety standards for pedal bicycles, under the Fair Trading Act 1986.
Judge David Sharp said the business acted in a “highly careless” manner, though conceded Container Door had been co-operative and done everything it could to to recall the bikes in question.
“Cyclists are vulnerable. To supply bicycles that do not comply with safety standards is something I regard as serious,” Judge Sharp said.
Between 1 April and 23 November 2017, the business supplied 15 Huffy Cruiser bikes that weren’t sold with a front brake, as well as a lack of required information – lacking information on the manufacturer, importer or supplier, as well as a recommendation that the bike should be built by a skilled mechanic.
Commission general manager of competition and consumer brand Antoina Harrocks said the case proved how important it is for businesses to know their legal obligations, and to operate compliance programmes to abide by the law.
While Container Door sought a discharge without conviction, Judge Sharp found that the gravity of the offence warranted the sentence.