A business that has been serving Australians for over a century has suddenly found itself in administration, leaving customers wondering what happens to their bids, purchases, and the future of one of the country's largest online auction platforms.
Grays Online, which started way back in 1922 and have grown to become one of Australia's largest e-commerce businesses, entered voluntary administration on Friday under the control of McGrathNicol partners.
The timing couldn't be more dramatic - the collapse occurred mere days after the platform was sold to Slattery Auctions for approximately $2 million.
From horse and cart to online empire
In 2000 they moved their business online creating GraysOnline a site that today, features hundreds of online auctions daily. For many Australians over 60, Grays represented the evolution of the traditional auction house they might have attended in person decades ago.
The platform became Australia's leading online auction platform and attracted millions of Grays users browsing, bidding, & snagging amazing deals on everything from cars and wine to industrial equipment and antiques.
'At least 750 consumers bought a car from Grays which was incorrectly described'
However, this digital transformation came with serious growing pains that would ultimately contribute to its downfall.
The deception that cost millions
The collapse follows a devastating Federal Court ruling in July 2024, where Grays eCommerce Group Limited, an Australia-wide online auction business, to pay $10 million in penalties. This wasn't a simple case of occasional mistakes—it was systematic deception.
Grays admitted to making false or misleading representations in the descriptions of hundreds of cars listed for sale on its website between 1 July 2020 and 30 June 2022.
The scale was staggering: at least 750 car descriptions on its website contained false information.
The deception took many forms that would be particularly problematic for older buyers who might not have the mechanical knowledge to spot issues immediately.
Examples included the wrong manufacturing year or transmission system, listing features that the car listed for sale did not have, and a failure to mention obvious faults (such as damage to the car or active dashboard warning lights).
What went wrong with Grays' car listings
The Federal Court found systematic problems including:
• Manual cars advertised as automatic transmission
• Wrong manufacturing years listed
• Features advertised that cars didn't actually have
• Hidden damage and mechanical faults not disclosed
• Active warning lights on dashboards not mentioned
• Wrong make and model information
A culture of denying refunds
Perhaps most concerning for consumers was what happened when buyers discovered they'd been misled. Senior managers were aware at the time of a number of complaints from buyers over the misleading car listings, but did little to address the problem, according to court documents.
In his judgment, Justice Nicholas said Grays encouraged its customer service team to decline refunds to buyers who had been misled, and directed staff to 'say no' to buyers requesting refunds for when listings failed to disclose damage.
This culture of denial meant affected consumers often had to invest significant time and energy to convince Grays to provide a remedy, and were made to wait months for a resolution.
We are aware of some consumers that paid to repair the vehicle that was incorrectly described or re-sold it at a loss.
The financial impact was severe: an estimated $3.86 million in losses to Australian consumers. Grays' undertaking to pay compensation to consumers is an important part of the resolution of this matter, and provides a meaningful outcome for affected consumers.
The administration: what it means for users
Now under voluntary administration, many customers are worried about their current bids and recent purchases.
Administrators Damien Pasfield and Jason Preston from McGrathNicol have provided some reassurance, stating that the company's current website and app would remain live and continue to be available for customers as usual.
The administrators have indicated they have funding available from the shareholder and secured creditor Slattery Auctions to support the administration process including funding employee wages and ongoing operations.
What does this mean for you
- If you're a current Grays customer:
- • The website and app continue to operate normally
- • Existing bids and auctions should proceed as planned
- • Payment and collection processes remain in place
- • However, be extra cautious about new purchases during this uncertain period
- • Keep all documentation of your transactions
The ownership puzzle
Adding another layer of complexity to this story is the ownership structure. The sale to Slattery Auctions might seem like an arm's length transaction, but Slattery is owned by Quadrant Private Equity—the same firm that previously owned Grays.
The decision to liquidate also casts doubt on the fate of $115 million owed by former owner Quadrant to Westpac Bank. Quadrant, which had been trying to offload Grays for months amid reputational damage and regulatory pressure, has not responded to media inquiries.
This circular ownership raises questions about whether the sale was genuine or an attempt to restructure debts and liabilities.
Protecting yourself when auction shopping online
For seniors who enjoy the thrill of online auctions, the Grays situation offers valuable lessons about staying safe in the digital marketplace.
Essential auction safety tips
- • Research the seller's reputation and complaint history
- • Read item descriptions carefully and ask questions before bidding
- • Inspect items in person when possible, especially for high-value purchases
- • Keep detailed records of all communications and transactions
- • Understand your consumer rights under Australian Consumer Law
- • Be wary if customer service seems unhelpful or dismissive of complaints
The ACCC's successful action against Grays demonstrates that consumer protection laws do work, but prevention is always better than cure. 'The purchase of a car is often a significant financial decision,' says Carver.
'Consumers rely on their car to get them to work, school or other commitments and they should be able to rely on the description in the auction listing to be correct. Businesses must not mislead consumers about what they are buying'.
What happens next
While administrators work to determine Grays' future, as of October 2023, Grays has paid over $1.1 million in refunds to customers and will continue to pay around a further $2.7 million in compensation, according to court documents.
The company has until June 2027 to pay, with the first payment to be made in June 2025 and $1.5 million to be paid by 2026.
Did you know?
Did you know?
Despite having a 2.8 out of 5 star rating on ProductReview.com.au from over 3,500 reviews, Grays continued to be one of Australia's most popular auction sites, processing millions of transactions annually before its collapse.
For those affected by the car listing deceptions, the ACCC warns to be alert of scammers pretending to make contact on behalf of Grays to facilitate a refund.
Consumers who have queries about eligibility for redress should contact Grays directly.
The collapse of such an established Australian business serves as a reminder that even century-old companies aren't immune to the consequences of poor business practices.
While the platform continues to operate under administration, customers should remain cautious and ensure they understand their rights when participating in online auctions.
What This Means For You
The story of Grays Online reminds us that in our increasingly digital world, the fundamental principles of honest dealing and consumer protection remain as important as ever. Whether you're bidding on a vintage collectible or a reliable family car, knowing your rights and staying vigilant is your best protection.
Have you ever used Grays Online for buying or selling? What was your experience with online auction sites, and do you think there should be stricter regulations for online marketplaces? Share your thoughts and experiences in the comments below.
Primary Source
https://www.news.com.au/finance/bus...e/news-story/6a1dc8777e5a94f789f4c0af3166225c
GraysOnline | Auction Finder
Cited text: Grays auctions started way back in 1922 and have grown to become one of Australia's largest e-commerce businesses.
Excerpt: started way back in 1922 and have grown to become one of Australia's largest e-commerce businesses
https://www.auctionfinder.com.au/dir/nsw/graysonline/
GraysOnline | Auction Finder
Cited text: Grays auctions started way back in 1922 and have grown to become one of Australia’s largest e-commerce businesses.
Excerpt: started way back in 1922 and have grown to become one of Australia's largest e-commerce businesses
https://www.auctionfinder.com.au/dir/nsw/graysonline/
GraysOnline | Auction Finder
Cited text: In 2000 they moved their business online creating GraysOnline a site that today, features hundreds of online auctions daily.
Excerpt: In 2000 they moved their business online creating GraysOnline a site that today, features hundreds of online auctions daily
https://www.auctionfinder.com.au/dir/nsw/graysonline/
GraysOnline | Auction Finder
Cited text: In 2000 they moved their business online creating GraysOnline a site that today, features hundreds of online auctions daily.
Excerpt: In 2000 they moved their business online creating GraysOnline a site that today, features hundreds of online auctions daily
https://www.auctionfinder.com.au/dir/nsw/graysonline/
Grays.com: Australia's Premier Online Auction Platform
Cited text: Explore Grays.com, Australia's leading online auction platform.
Excerpt: Australia's leading online auction platform
Grays: Auction Marketplace—Apps on Google Play
Cited text: Now conveniently available in the palm of your hand, join millions of Grays users browsing, bidding, & snagging amazing deals on Australia’s largest A...
Excerpt: millions of Grays users browsing, bidding, & snagging amazing deals
https://play.google.com/store/apps/details?id=com.au.graysonline&hl=en_AU
Grays to redress consumers and pay $10 million in penalties for misleading descriptions of cars for sale by auction | ACCC
Cited text: The Federal Court has ordered Grays eCommerce Group Limited, an Australia-wide online auction business, to pay $10 million in penalties, in proceeding...
Excerpt: Grays eCommerce Group Limited, an Australia-wide online auction business, to pay $10 million in penalties
https://www.accc.gov.au/media-relea...ding-descriptions-of-cars-for-sale-by-auction
Grays to redress consumers and pay $10 million in penalties for misleading descriptions of cars for sale by auction | ACCC
Cited text: Grays admitted to making false or misleading representations in the descriptions of hundreds of cars listed for sale on its website between 1 July 202...
Excerpt: Grays admitted to making false or misleading representations in the descriptions of hundreds of cars listed for sale on its website between 1 July 2020 and 30 June 2022
https://www.accc.gov.au/media-relea...ding-descriptions-of-cars-for-sale-by-auction
Grays to redress consumers and pay $10 million in penalties for misleading descriptions of cars for sale by auction | ACCC
Cited text: “Grays made false or misleading representations in at least 750 car descriptions on its website.
Excerpt: at least 750 car descriptions on its website
https://www.accc.gov.au/media-relea...ding-descriptions-of-cars-for-sale-by-auction
Grays to redress consumers and pay $10 million in penalties for misleading descriptions of cars for sale by auction | ACCC
Cited text: Examples included the wrong manufacturing year or transmission system, listing features that the car listed for sale did not have, and a failure to me...
Excerpt: Examples included the wrong manufacturing year or transmission system, listing features that the car listed for sale did not have, and a failure to mention obvious faults (such as damage to the car or active dashboard warning lights)
https://www.accc.gov.au/media-relea...ding-descriptions-of-cars-for-sale-by-auction
Car auction site that misled buyers fined $10 million | The Senior | Senior
Cited text: Senior managers were aware at the time of a number of complaints from buyers over the misleading car listings, but did little to address the problem, ...
Excerpt: Senior managers were aware at the time of a number of complaints from buyers over the misleading car listings, but did little to address the problem, according to court documents.
https://www.thesenior.com.au/story/8700314/car-auction-site-that-misled-buyers-fined-10-million/
Grays to redress consumers and pay $10 million in penalties for misleading descriptions of cars for sale by auction | ACCC
Cited text: “Affected consumers often had to invest significant time and energy to convince Grays to provide a remedy, and were made to wait months for a resoluti...
Excerpt: affected consumers often had to invest significant time and energy to convince Grays to provide a remedy, and were made to wait months for a resolution.
https://www.accc.gov.au/media-relea...ding-descriptions-of-cars-for-sale-by-auction
Grays to redress consumers and pay $10 million in penalties for misleading descriptions of cars for sale by auction | ACCC
Cited text: We are aware of some consumers that paid to repair the vehicle that was incorrectly described or re-sold it at a loss.” · “Today’s orders by the Court...
Excerpt: an estimated $3.86 million in losses to Australian consumers. Grays' undertaking to pay compensation to consumers is an important part of the resolution of this matter, and provides a meaningful outcome for affected consumers
https://www.accc.gov.au/media-relea...ding-descriptions-of-cars-for-sale-by-auction
EXCLUSIVE: Owing $10M Fine Greys Online Suddenly Placed Into Administration Days After $2M Sale—channelnews
Cited text: The decision to liquidate also casts doubt on the fate of $115 million owed by former owner Quadrant to Westpac Bank. Quadrant, which had been trying ...
Excerpt: The decision to liquidate also casts doubt on the fate of $115 million owed by former owner Quadrant to Westpac Bank.
https://www.channelnews.com.au/excl...laced-into-administration-days-after-2m-sale/
Grays agrees to pay $10m fine for misleading car ads
Cited text: “The purchase of a car is often a significant financial decision,” says Carver. “Consumers rely on their car to get them to work, school or other comm...
Excerpt: 'The purchase of a car is often a significant financial decision,' says Carver.
https://www.businessnewsaustralia.c...ne-for-misleading-car-ads-on-its-website.html
Car auction site that misled buyers fined $10 million | The Senior | Senior
Cited text: As of October 2023, Grays has paid over $1.1 million in refunds to customers and will continue to pay around a further $2.7 million in compensation, a...
Excerpt: as of October 2023, Grays has paid over $1.1 million in refunds to customers and will continue to pay around a further $2.7 million in compensation, according to court documents
https://www.thesenior.com.au/story/8700314/car-auction-site-that-misled-buyers-fined-10-million/
Car auction site that misled buyers fined $10 million | The Senior | Senior
Cited text: The online auction house will be given until June 2027 to pay, with the first payment to be made in June 2025 and $1.5 million to be paid by 2026.
Excerpt: until June 2027 to pay, with the first payment to be made in June 2025 and $1.5 million to be paid by 2026
https://www.thesenior.com.au/story/8700314/car-auction-site-that-misled-buyers-fined-10-million/
Grays in court over misleading descriptions of cars for sale online | ACCC
Cited text: Consumers are warned to be alert of scammers pretending to make contact on behalf of Grays to facilitate a refund. Consumers who have queries about el...
Excerpt: be alert of scammers pretending to make contact on behalf of Grays to facilitate a refund.
https://www.accc.gov.au/media-relea...sleading-descriptions-of-cars-for-sale-online
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