Online electronics retailer Digital Marketing and Solutions, which traded as Android Enjoyed and Camera Sky, along with its director have been penalised a total of $3,150,000.
The retailer and director Yuen Ho Wong were found by the Supreme Court of NSW on 4 April 2019 to have contravened the Australian Consumer Law (NSW) on numerous occasions. The court ordered pecuniary penalties of $2,250,000 against the company and $900,000 against Mr Wong.
NSW Fair Trading Commissioner Rose Webb said between January 2017 to July 2018, Fair Trading received 637 consumer complaints on purchases made through Android Enjoyed and Camera Sky websites.
"Complaints received indicated that on numerous occasions, Android Enjoyed and Camera Sky failed to supply mobile phones, cameras and camera accessories within a reasonable time or did not supply them at all. The company further failed to repair defective goods and failed to provide a refund within a reasonable time," Ms Webb said.
"Android Enjoyed has appeared on the NSW Fair Trading complaints register on 17 occasions since it was first published in July 2016 and appeared on the register for eight consecutive months between November 2017 and June 2018."
Fair Trading investigations also found that the business made false or misleading representations to customers that the goods purchased online were in stock and would be provided within a specified time frame. However, in many cases the goods were not in stock and could not be provided as promised.
Minister Kevin Anderson said the company and its director have had a long history with Fair Trading, as well as being the subject of complaints in most other states and territories.
"Today's result sends a strong message to anyone who wants to take advantage of consumers; you will be found out, and you will be punished," Mr Anderson said.
"The court not only ordered pecuniary penalties over $3,000,000 but also disqualified Mr Wong for two years from being a director or the corporation. The sanctions the court has imposed are particularly significant given the challenges of dealing with internet-based traders who have a limited physical presence in Australia."
Ms Webb added that this is a great result after a significant investigation led by Fair Trading.
"The case demonstrates that Fair Trading will continue to work to ensure that all retailers that take advantage of Australian consumers are subject to appropriate enforcement action," Ms Webb said.
Digital Marketing and Solutions and its director Mr Wong have the right to lodge an appeal.
