Exposed: Online retailer pays $10 million for auction scandal
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The digital marketplace has become a bustling hub for Australians looking to snag a bargain, especially for big-ticket items like cars.
However, the trust we place in online retailers to accurately describe their products is paramount.
This trust was breached by Grays Australia, a prominent online auction and retail company, caught in a scandal involving misleading car listings.
Grays Australia is now set to pay a hefty $10 million in penalties.
Between 1 July 2020, and 30 June 2022, Grays misled consumers with at least 750 car descriptions on its website.
The Australian Competition and Consumer Commission (ACCC) found that these listings contained false or misleading representations, leading to an estimated $3.86 million in consumer losses.
The inaccuracies ranged from incorrect transmission systems to the omission of significant faults such as damage or active dashboard warning lights.
Even basic information about the car's make and model was sometimes left out.
ACCC Commissioner Liza Carver highlighted the gravity of the situation.
‘As a result, hundreds of consumers may have bought a car they would not otherwise have purchased, or may have paid more than they would have, if they had known the correct details,’ she said.
The Federal Court's order for Grays eCommerce Group Limited to pay $10 million in penalties came after the ACCC proceeded.
To rectify the situation, the ACCC had already accepted a court-enforced undertaking from Grays in February to compensate affected customers.
With the court's orders in place, Grays has begun the redress process, reaching out to some affected customers to offer compensation.
Commissioner Carver acknowledged the court's decision as a crucial step in resolving a stressful ordeal for many customers.
‘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,’ she explained.
‘We are aware of some consumers that paid to repair the vehicle that was incorrectly described or re-sold it at a loss.’
‘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.’
Grays has cooperated with the ACCC during the investigation and, as part of the court's orders, must maintain an Australian Consumer Law compliance program.
This program is designed to ensure that such breaches of consumer trust do not occur in the future.
For those who believe they may be eligible for redress, Grays can be contacted directly at 1800 958 463 or via email at [email protected].
In related news, the Federal Court has ordered Mazda to pay $11.5 million for misleading customers about their consumer guarantee rights on faulty vehicles.
The court determined that Mazda made false or misleading representations regarding seven vehicles with recurring faults to nine customers. For more details, click here.
Have you ever encountered misleading information when shopping online? How did you handle the situation? Feel free to share them in the comments below.
However, the trust we place in online retailers to accurately describe their products is paramount.
This trust was breached by Grays Australia, a prominent online auction and retail company, caught in a scandal involving misleading car listings.
Grays Australia is now set to pay a hefty $10 million in penalties.
Between 1 July 2020, and 30 June 2022, Grays misled consumers with at least 750 car descriptions on its website.
Grays Australia to pay $10 million in penalties for misleading car listings. Credit: Shutterstock
The Australian Competition and Consumer Commission (ACCC) found that these listings contained false or misleading representations, leading to an estimated $3.86 million in consumer losses.
The inaccuracies ranged from incorrect transmission systems to the omission of significant faults such as damage or active dashboard warning lights.
Even basic information about the car's make and model was sometimes left out.
ACCC Commissioner Liza Carver highlighted the gravity of the situation.
‘As a result, hundreds of consumers may have bought a car they would not otherwise have purchased, or may have paid more than they would have, if they had known the correct details,’ she said.
The Federal Court's order for Grays eCommerce Group Limited to pay $10 million in penalties came after the ACCC proceeded.
To rectify the situation, the ACCC had already accepted a court-enforced undertaking from Grays in February to compensate affected customers.
With the court's orders in place, Grays has begun the redress process, reaching out to some affected customers to offer compensation.
Commissioner Carver acknowledged the court's decision as a crucial step in resolving a stressful ordeal for many customers.
‘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,’ she explained.
‘We are aware of some consumers that paid to repair the vehicle that was incorrectly described or re-sold it at a loss.’
‘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.’
Grays has cooperated with the ACCC during the investigation and, as part of the court's orders, must maintain an Australian Consumer Law compliance program.
This program is designed to ensure that such breaches of consumer trust do not occur in the future.
For those who believe they may be eligible for redress, Grays can be contacted directly at 1800 958 463 or via email at [email protected].
In related news, the Federal Court has ordered Mazda to pay $11.5 million for misleading customers about their consumer guarantee rights on faulty vehicles.
The court determined that Mazda made false or misleading representations regarding seven vehicles with recurring faults to nine customers. For more details, click here.
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