Consumer electronics e-tailer Ozdirect has apparently ceased trading after the Federal Court found it accepted payment for goods it could not supply due to insufficient credit with suppliers.
The Federal Court found the company and its director Paul Albright engaged in "misleading and deceptive conduct".
The Australian Competition and Consumer Commission - which launched the action - said it understood "Ozdirect has ceased trading and Mr Albright's wherereabouts are now unknown."
Neither attended the hearing last December.
In the judgment, Justice Rares noted that Ozdirect had accepted orders and payments from a significant number of customers whilst it was on credit hold with its suppliers.
He declared that Ozdirect had made misrepresentations to consumers, including about the availability and likely delivery times of items advertised for sale, as well as the reasons for delivery delays.
The court made injunctions restraining Ozdirect and Albright from engaging in conduct of the kind alleged in the proceedings.
Ozdirect and Albright were also ordered to pay the ACCC's costs.
"Other online retailers need to be aware that if they take payment from consumers for goods that they are not able to supply, they will risk similar court action by the ACCC," warned ACCC chairman Graeme Samuel.
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