Lime Network Pty Ltd (Lime), the e-scooter rental company that supplies lime scooters in Brisbane, misled consumers about safety concerns surrounding its Gen 2 model e-scooter according to the Australian Competition & Consumer Commission (ACCC).
'In certain circumstances, Lime's Gen 2 e-scooters would apply excessive brake force, or locking, occurring on the front wheel, causing it to stop suddenly,' an ACCC statement reads.'Serious injuries suffered by consumers as a result included broken bones, damaged teeth, cuts and abrasions.'
The ACCC contends Lime knew about the safety issues, but failed to disclose the information to consumers about at least 50 occasions where injury resulted from riding a Gen-2 e-scooter.
"Misrepresenting the safety of a product can have very serious consequences," ACCC Commissioner Sarah Court says.
"Businesses must disclose known issues so that consumers can take extra precautions if they still choose to use the products."
Lime, who suspended its e-scooter operations in Australia in March 2020 due to the coronavirus pandemic, have acknowledged its conduct was likely to have contravened the Australian Consumer Law, and has admitted that each time it failed to report a serious injury to the Commonwealth Minister it breached its Australian Consumer Law reporting obligations.
The ACCC has accepted a court-enforceable undertaking from Lime to address the ACCC's concerns. If Lime recommences its Australian operations, it has undertaken to only supply Gen 3 (or later models) e-scooters.
