Two businessmen who accepted payments from customers but failed to provide them with the cubby houses they had ordered have been convicted and fined $30,000 each.
The court also ordered each man to pay compensation of $3193.50 to consumers.
Andrew Khoury, 45, and Neville Morrison, 46, who operated as Kids Outdoors, pleaded guilty in the Melbourne Magistrates Court to six counts each of contravening the Australian Consumer Law (ACL). The pair accepted payment from six customers for cubby houses but failed to supply them, either within an agreed time frame or at all.
Kids Outdoors continued to accept orders, promising delivery before Christmas, but could not keep up with the orders placed. They then went out of business and left their customers out of pocket and with no explanation.
Following Consumer Affairs Victoria’s investigation, most Kids Outdoors customers received refunds, charge backs or compensation for the money they had paid for the cubby houses they never received.
The case marks the first time breaches of the ACL have been prosecuted by Consumer Affairs Victoria.
Mr Khoury and Mr Morrison also pleaded guilty to one count each of contravening the Business Names Act 1962 by trading as ‘Kids Outdoors’ when that business name was unregistered.