The Australian Competition and Consumer Commission who earlier this year took on the Kogan web site accusing them of misleading advertising, has now taken legal action against Ozdirect Online and ausbuys.com accusing them of being in contraventions of the Trade Practices Act 1974.

The move raises questions about the ethics of management running technology web sites in Australia a leading retail executive said.

The ACCC has instituted legal proceedings in the Federal Court, Sydney against Ozdirect Online Brands Pty Ltd, and its director Paul Albright.

The conduct relates to the offer for sale of electronic goods on websites including www.ozdirect.com, www.ozdirect.com.au and www.ausbuys.com.

The ACCC alleges that Ozdirect accepted payment from consumers for goods it knew, or ought reasonably to have known, it would not be able to supply within a reasonable time, and that it made misrepresentations to consumers, about the availability and likely delivery times of items and also, consumer warranty and refund rights.

The ACCC alleges Ozdirect’s conduct was misleading or deceptive and contravened sections 52, 53(g) and 58 of the Act, and that Mr Albright was knowingly concerned in that conduct.

The ACCC seeks orders including declarations that Ozdirect’s conduct contravened the Act and that Mr Albright was knowingly concerned in that conduct; injunctions, including interim injunctions; findings of fact; an order that Ozdirect implement a trade practice compliance program; and costs.

This matter has been listed for an interlocutory hearing on July 24 2009.