INDEPENDENT NEWS

ABC Motor Group Fined $13,500

Published: Thu 31 May 2001 01:54 PM
Issued 30 May 2001
Third Car Dealer Fined Under Fair Trading Act In Nine Days: ABC Motor Group Fined $13,500
When the Auckland District Court fined ABC Motor Group Limited $13,500 today, it was the third car dealer fined in nine days for breaching the Fair Trading Act.
Commerce Commission Chair John Belgrave said that the Act prohibits false or misleading claims and also prohibits misleading or deceptive conduct.
Last week the Wellington District Court fined two linked companies, Avery Motors Limited and Stevens Motors Limited, a total of $14,000.
All three companies had used similar newspaper advertising. In bold print they advertised special offers, and the advertisements featured photographs, specifications and prices of cars. Small print stated that the special offers did not apply to the cars featured in the advertisements.
ABC Motor Group, which trades as ABC Direct Imports Motor Group LMVD, offered $6,000 off car prices or a $6,000 minimum trade-in.
"Small print cannot be used to substantially change or qualify the impression given by advertising," Mr Belgrave said.
"Photographs, pictures and all important terms and conditions should match the offer and must be clearly and accurately disclosed. To do anything else risks breaching the Act.
"Comments from these three companies, that many car dealers use such ads, and information from our surveillance of advertising suggest that using photographs that did not match the advertised offer is a common problem.
"It was a previously a problem in the furniture retailing industry, but reduced considerably after the Commission took a series of prosecutions.
"More enforcement action is likely against car dealers until compliance improves."
Background
The conviction of ABC relates to advertisements published in the New Zealand Herald on August 24 and September 2 last year, and in the Auckland edition of the Motor Guide on July 27, August 3, August 24 and August 31 last year.
Ends

Next in Business, Science, and Tech

National Backs Businesses With $10k JobStart
By: New Zealand National Party
Government Exempts Some Home Improvements From Costly Consents
By: New Zealand Government
The New Zealand Herald Named Newspaper Of The Year, Website Of The Year At Voyager Media Awards
By: New Zealand Media and Entertainment
ASB Takes The Lead Again With New Low Home Loan Interest Rate
By: ASB Bank
The Problems With Testing And Case Statistics For Covid-19
By: Nathan Hoturoa Gray
Fletcher Building to lay off 1000 staff in New Zealand
By: RNZ
Driving prompt payments to small businesses
By: New Zealand Government
On Why We Should Legally Protect The Right To Work From Home
By: Gordon Campbell
Thousands Of Kiwis Travelling For Queen’s Birthday Weekend
By: Auckland Airport
Understanding 5G Concerns – Expert Q&A;
By: Science Media Centre
Record Monthly Surplus As Imports Dive
By: Statistics New Zealand
Bar reopening night 'much, much quieter'
By: RNZ
New Zealand’s population passes 5 million
By: Statistics New Zealand
Seven Weeks Of Clearing The Air Provides Huge Benefits: Scientist
By: NIWA
Milestone In Cash Flow Support To SMEs
By: New Zealand Government
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media