Court finds online retailers engaged in misleading and deceptive conduct

The Federal Court has ruled online fashion retailer Designer Brand Outlet engaged in misleading and deceptive conduct by selling counterfeit goods and failing to supply designer clothing it sold through its site.

The Federal Court has ruled online fashion retailer Designer Brand Outlet engaged in misleading and deceptive conduct by selling counterfeit goods and failing to supply designer clothing it sold through its site.

The case against Design Brand Outlet and its operators Bindert (Ben) Kloosterman and Xin Fan (Lucy) Shi was bought by the Australian Competition and Consumer Commission.

The court granted injunctions restraining Kloosterman and Shi from engaging in similar conduct for five years. Failure to comply with these injunctions is contempt of court and is punishable by fines or imprisonment.

Kloosterman and Shi were also ordered to pay the ACCC’s legal costs.

The court has now adjourned the case until 2 March 2009 so that the ACCC can prepare a compensation case for customers of the site who believe they have been misled.

ACCC chairman Graeme Samuel has urged affected customers who are yet to contact the consumer watchdog to get in touch.

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