Car buyers weren’t told of “faults” and were given false information about their purchases by a major online retailer, Australia’s consumer watchdog alleges.
Grays, trading as Grays eCommerce Group Limited, is being taken to court by the Australian Competition and Consumer Commission over “at least” 750 instances of a car being “incorrectly described” to the buyer.
“As a result, hundreds of consumers may have bought a car they would not otherwise have purchased, or may have paid more than they would have, had they known the correct details,” ACCC Commissioner Liza Carver said in a statement.
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The watchdog alleges cars were advertised with the wrong year of manufacture and transmission system.
Auction listings allegedly spruiked features that cars didn’t have, according to the ACCC, while faults including the presence of damage or warning lights allegedly weren’t mentioned in the ads.
“The purchase of a car is often a significant financial decision,” Carver said.
“Consumers rely on their car to get them to work, school or other commitments and they should be able to rely on the description in the auction listing to be correct.
“Businesses must not mislead consumers about what they are buying.
“If they do mislead them, this is a breach of the Australian consumer law.”
Representatives for Grays and the ACCC will go to the Federal Court for approval of a $10 million penalty for the company which the watchdog says had admitted to misleading consumers. A date for the hearing is yet to be fixed.
Some customers have already been offered redress by Grays.
A full redress scheme is set to begin after the court makes its final orders regarding the matter, according to the ACCC.
The ACCC is warning people of a possible scam where a person purporting to be a Grays representative attempts to organise a refund.
People who believe they may be entitled to redress should contact Grays directly, the ACCC said.