Auckland car dealer warned for 'misleading' customers

Thursday, 25 January 2018

An Auckland car dealership that 'misled' customers has copped a warning from the Commerce Commission.

The Commission said it had investigated five complaints into Motor Me owner Brent Smith, who sells cars on Trade Me, the Motor Me website and at his car yard in Onehunga.

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It found Smith had 'likely breached the Fair Trading Act' by making false or misleading representations about the quality, history and AA endorsement of the cars he offered for sale.

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Complaints against Smith from customers included that a car was advertised as having less mileage on the odometer than it did; that a car was advertised as having an AA tick and safety certification when it did not; and that a car was in good condition, inside and out, when it was not. 

The Commission's competition general manager Antonia Horrocks said her organisation received a significant number of complaints about car retail and sales.

'Purchasing a vehicle is a significant spend for a consumer and compliance with the Fair Trading Act by car dealers is important when advertising motor vehicles,' she said. 

'If you are selling a vehicle you must describe it accurately, including relevant information about its quality, history and any endorsements or benefits.

'In this case, three of the complainants provided evidence to us that the relevant vehicle's physical condition and mechanical performance was of lower quality than represented to the customer through Trade Me listings or email correspondence.'

The customers who made the complaints had all received either a partial or full refund from Motor Me.