[ad_1]
An Auckland car dealership was fined $ 67,500 for listing vehicles for sale “as-is, where-is” after several buyers were left with expensive repair bills.
In a decision published Monday, the Trade Commission said BNZ JP Euro had misrepresented the rights of consumers under the Consumer Guarantees Act.
He had previously pleaded guilty to six representative charges under the Fair Trade Act, primarily related to the sale of 77 used motor vehicles between August 2017 and December 2018.
BNZ JP Euro operates a wrecker business that sells auto parts in Papakura.
READ MORE:
* Superloans warned of responsible “ probable ” loan defaults
* Borrowers will get refunds after the Commerce Commission advises the finance company
* 2 Cheap cars fined nearly $ 500k for ‘devious’ behavior
* The Commerce Commission warns the car dealer about potentially misleading advertising
At the time of the crime, he was also selling cheap used motor vehicles, which were advertised on Facebook.
John Hawkins / Things
The Consumer Guarantees Law applies to used motor vehicles. (File photo)
BNZ JP Euro offered vehicles for sale “as is where they are” and asked buyers to sign an agreement acknowledging that “there is no warranty implied or given within it.”
Commission chair Anna Rawlings said the statements suggested consumers had no rights if something went wrong with the vehicle, when in fact the Consumer Warranty Act applies to used motor vehicles.
“Merchants cannot evade their responsibilities to provide warranties and repairs under the CGA by using phrases like ‘as is, where is’.
“When consumers buy vehicles from dealers, rather than private sellers, the purchase will always be covered by legal guarantees, including that the vehicle is of acceptable quality and meets its description.”
Any attempt by merchants to mislead consumers about their rights would likely violate the Fair Trade Act.
Rawlings said the dealer’s conduct had a real impact on his customers, some of whom felt they had no repair for the defective vehicles and that the problems were just for them.
“In four cases that we are aware of, consumers purchased vehicles that required substantial repairs. In at least two of those cases, the cost was about the same as the purchase price of the vehicle itself. “
BNZ JP Euro also did not provide Consumer Information Notices (CIN) with the vehicles it sold.
Notices include information such as the age of the vehicle, the distance traveled, and any safety concerns about the vehicle and must be displayed on all used vehicles sold by a used motor vehicle dealer.
The company pleaded guilty to a representative charge related to failing to display the CINs of 16 vehicles sold between October and December 2018. It is a single offense offense and a conviction cannot be entered for it.
The Commerce Commission has taken several similar prosecutions in recent years.
In July 2019, 2 Cheap Cars Limited was fined $ 438,000, including the use of “waiver of warranty” documents.
Retailer Noel Leeming was fined $ 200,000 in December 2018 for misleading consumers about their rights under the CGA.
