Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

ABC Motor Group Fined $13,500

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


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Manawatu-Whanganui Projects: PGF Top-Up To Rural Broadband Roll-Out

The government has effectively raided the $3 billion Provincial Growth Fund to top up the budget for the second phase of its rural broadband initiative, filling in mobile 'black spots' and ensuring broadband is available to marae that don't have access now. More>>

ALSO:

Other Windy Cities: Auckland-Chicago Named A Top 10 ‘Most Exciting’ New Route

The inclusion of Auckland-Chicago on Lonely Planet’s Where to fly in 2019? The 10 most exciting new flight routes list comes just two weeks before Air New Zealand prepares to celebrate its inaugural flight to Chicago’s O’Hare International Airport on 30 November. More>>

Deadly Strain: ESR Ups Its Reporting On Meningococcal Disease

The increasing number of cases of Group W Meningococcal disease (MenW) has prompted ESR to increase its reporting on the disease to the Ministry of Health. ESR has upped its reporting to weekly. More>>

ALSO:

Very Small Things: "Game-Changing" 3D Printing Technology Launched

New Zealand microfabrication researchers Andrea Bubendorfer and Andrew Best, the co-inventors of a new way of fabricating very small things with Laminated Resin Printing (LRP), are part of Callaghan Innovation’s MicroMaker3D team launching the new patent pending technology in the US this week. More>>

ALSO: