Mwave revealed that issues related to the online retailer Mwave's warranty and returns policy, which has fetched huge embarrassment to its directors, were rectified nine months ago.

The Australian Competition and Consumer Commission told Esel Trading directors Victor Lee and Wilson Zhang last June that its Mwave website's warranty and refunds policy blatantly breached the Trade Practices Act.

Mwave marketing manager, Steve Grant explained, "The initial wording for our warranties policy on our website was written incorrectly".

"We have worked with the ACCC since July last year to fix the problem and to make sure everything is now correct", he added.

As per the industry watchdog claims, Mwave's website posted that it was not responsible for warranty claims as the customers had to relate to the manufacturers directly. The company also seeks a pay for freight costs from its customers when returning a faulty item.

In addition, the commission alleged that Mwave's refusal to exchange, refund or replace opened items flouted the Act.