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King Cargo fined $5,000 for selling dodgy bicycles

King Cargo fined $5,000 for selling dodgy bicycles

King Cargo Limited was fined $5,000 plus costs in the Masterton District Court last week for selling bicycles that failed to comply with the bicycle safety standard.

A Commerce Commission investigation in December 2001 found that 34 Trans brand BMX and mountain bikes on sale by King Cargo in its temporary shop in Masterton did not meet the required safety standards. Failure to comply with the standards is a breach of the Fair Trading Act.

At the time, King Cargo company director Stuart Connell undertook to recall the bicycles, and to replace or repair any bicycles that did not comply with the safety standard. His subsequent failure to do so resulted in the Commission taking legal action against the company and Mr Connell.

Director of Fair Trading, Deborah Battell said the case sent a message to all suppliers of bicycles to conform with the product safety regulations.

“The safety regulations are designed to protect consumers from potential hazards and it is important that all suppliers adhere to them,” she said.

“This case also sends a message to businesses that if they break the conditions of a Commission settlement, court action will follow.”

In sentencing, Judge Dalmer said that any matter which involved safety on the road and children is of significance.


Background

For more information see: Media Release 2002/2: Commerce Commission considers prosecution if King Cargo fails to honour its undertakings on recalling and repairing bicycles that do not meet the safety standards, 10 January 2002 Media Release 2001/142: Trader agrees to recall bicycles that do not comply with safety regulations, 21 December 2001 Visit http://www.comcom.govt.nz/publications/mediarel.cfm and enter King Cargo under Search Term.

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