A North Queensland businessman has been ordered to pay $10,000 after accepting deposits from three customers for products that were never delivered.
Cairns Magistrates Court made the ruling against Jonothan Nathan Leahy after he pleaded guilty to failing to supply paid-for goods.
Mr Leahy, whose company Obihaka operates the businesses Tropical Lifestyle and Living, as well as The Granny Flat and Timber Cabin Superstore, admitted he had accepted deposits from three customers totalling $20,815 for the supply of outdoor pavilions and gazebos between September 2015 and October 2016.
But the items were never supplied, despite the customers making what was described as “numerous attempts over an 11-month period” to contact the business.
Then in January 2017, Mr Leahy sold the business to the manager he himself had appointed.
ASIC registers show that Obihaka was subsequently placed into liquidation.
The court said it took Mr Leahy’s guilty plea and cooperation with Queensland’s Office of Fair Trading, which prosecuted the case, into consideration when determining the penalty.
“The OFT will take action against businesses that accept money from consumers and fail to supply the goods within a reasonable time frame,” said Sharon Simmers, acting executive director of Fair Trading.
Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016.
- ‘Don’t assume how employees will react to redundancy’
By Simon Rountree
- Customers behaving badly: ‘My time is worth more than yours’
By Adam Zuchetti
- What businesses can learn from Sir Roger Bannister
By Adam Zuchetti