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

 

Climate Summary: NZ’s Equal-2nd Warmest Year On Record

Annual temperatures were above average (+0.51°C to +1.20°C above the annual average) across the majority of New Zealand... 2018 was the equal 2nd-warmest year on record for New Zealand, based on NIWA’s seven-station series which began in 1909. More>>

ALSO:

GDP: Economic Growth Dampens In The September Quarter

Gross domestic product (GDP) rose 0.3 percent in the September 2018 quarter, down from 1.0 percent in the previous quarter, Stats NZ said today... GDP per capita was flat in the September 2018 quarter, following an increase of 0.5 percent in the June 2018 quarter. More>>

ALSO:

Up $1.20: $17.70 Minimum Wage For 2019

Coalition Government signals how it will move toward its goal of a $20 p/h minimum wage by 2021... “Today we are announcing that the minimum wage will increase to $17.70 an hour on 1 April 2019." More>>

ALSO:

Retail: IKEA To Open In New Zealand

Inter IKEA Systems B.V. is today announcing its intentions to grant the Ingka Group exclusive rights to explore expansion opportunities in New Zealand. More>>