2 Cheap Cars fined $438,000 for “blatantly untrue and misleading” document, ads …
Used motor vehicle dealer 2 Cheap Cars Limited has been fined $438,000 for its use of “warranty waiver” documents and for its "liquidation sale" and “84% off” advertising claims.
Published
10 July 2019
2 Cheap Cars had earlier pleaded guilty to 10 charges under the Fair Trading Act 1986, following a Commerce Commission investigation opened in November 2017.
In a written sentencing decision ( 483 KB, PDF ) to help them meet their legal obligations.
Recent motor vehicle cases
The Commission has taken a number of recent enforcement actions against motor vehicle traders, particularly in regard to representations about consumers’ CGA rights:
- Vehicle Logistics was fined $75,000 in 2018 for conduct including that it advertised vehicles “as is where is” and/or that “no guarantee or warranty” applied
- $1 Reserve Cars and its owner Adam Cooper were fined in 2018 for conduct which included stating in vehicle listings that “As this is an auction for a complete package of second hand parts the Consumer Guarantee’s [sic] Act does NOT apply.”
- Earlier this year Taieri Motor Court was warned about representations made in Facebook advertising of vehicles, such as the distance a vehicle offered for sale had travelled.