In a significant development for consumer rights and protection, a prominent e-commerce platform is facing a hefty $10 million penalty for misleading consumers with false advertising.

The Australian Competition and Consumer Commission (ACCC) has taken decisive action, instituting legal proceedings in the Federal Court of Australia against the company for deceptive conduct related to vehicle auction listings on its website.

Between July 1, 2020, and June 30, 2022, Grays admitted to deceptive conduct and making false or misleading representations about cars offered for sale on its site.

The company has agreed to make joint submissions with the ACCC to the Court and proposed a $10 million penalty for these breaches of the Australian Consumer Law.

Grays has been fined $10 million for deceptive listings on its website. Image source: Grays.

The ACCC has acknowledged Grays' cooperation throughout the investigation.

'At least 750 consumers bought a car from Grays which was incorrectly described,' ACCC Commissioner Liza Carver stated.

'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, had they known the correct details.'

The ACCC found that various Grays listings had incorrect information regarding the year, transmission, and features of vehicles.

In many instances, Grays failed to mention obvious faults like damage to the vehicle or active dashboard warning lights.

This has allegedly resulted in consumers investing significant time and energy in obtaining a remedy from Grays, with some waiting months for a resolution.

Grays has already begun contacting some affected consumers, and the ACCC has accepted a court-enforceable undertaking from the auction site to provide redress to affected consumers.

This will commence once the Court makes final orders.

As part of the undertaking, Grays will review complaints, provide eligible consumers with redress, appoint an Independent Arbiter, and submit reports to the ACCC about its redress program, among other actions.

The ACCC has also issued a warning about potential scammers who may use this ACCC matter as a ruse to contact people and falsely claim they can help them get a refund.

They advised consumers to hang up immediately if they receive a call from anyone offering to help them with a refund.

Grays, known for selling a wide range of items including appliances, electronics, and jewellery, in addition to vehicles, has acknowledged its shortcomings.

'Grays acknowledges that it didn’t [fulfil] its responsibilities to some motor vehicle customers who purchased cars via the auction platform,' Grays CEO Spiro Haralambopoulos stated.

'We have not met our own high standards of customer service and satisfaction, and we apologise to customers who have been let down.'

'Grays is committed to remediating affected customers and is complying with the ACCC’s directions. Overall and proportionally, the issue affected a very small number of competitive automotive auctions we facilitated.'

'Grays is well progressed in the proactive remediation of impacted customers and is in the process of identifying and contacting the remaining customers to discuss their options.'

'Major changes have been implemented, including the introduction of a new and experienced senior leadership team, significant investments in the improvement of our customer service team and processes, and mandatory compliance and policy training for all staff.'

'We have also implemented new systems and tools for the auto department to assist in the listing of vehicles and have recruited and trained additional full-time employees on the vehicle check-in process.'

'In addition, the company has engaged a full-time National Complaints Manager to action feedback.'

'Grays is confident these changes have already led to improved outcomes for its customers, as demonstrated through a significant uplift in its Auto Net Promoter Score (NPS) and Trustpilot rating.'

'Grays looks forward to continuing to facilitate competitive auctions for its buyers and sellers and providing an excellent service that is easy, fair and transparent.'

Key Takeaways

• Grays E-Commerce has admitted to engaging in misleading or deceptive conduct by providing false descriptions in auction listings for vehicles.
• The ACCC has taken legal action against Grays, and the company has agreed to a proposed $10 million penalty for breaches of Australian Consumer Law.
• At least 750 consumers purchased vehicles from Grays based on incorrect information.
• Grays is undertaking remedial actions including contacting affected consumers, appointing an Independent Arbiter, and reporting to the ACCC on its redress program, all while improving its internal processes and customer service.

What are your thoughts on this issue? Let us know in the comments below!

 

[IAN3005]

Good grief... the ACC has come to life... shock and horror!!!

 

[Robbo3006]

About time, when are they going to be forced to tell the truth about the cars they sell, nearly all the listing's are bogus, then when you buy them and find they're junk after paying good money they won't take them back, I fukn hate Grays.

 

[Mr Chips]

Too big and out of control, I spent many years in the car industry working for reputable dealers and I experienced some of the ways that Grays were used by dealers to get rid of cars that they did not want to sell. I guess that Grays may have similar issues in other product areas, hopefully not. The situation was not entirely Grays fault but even so they should have been more responsible in checking the features of the vehicles. I watched many vehicles sold by Grays for substantial profits and often wondered why people would pay so much through auction houses rather than a better price at a reputable dealer who offered many more features including warranty not offered by Auctions.

 

[Tobony]

Grays need to upgrade their vehicle inspections as cars that I have purchased over the years have had faults that would have been detected at a competent inspection. Sellers use them to dump cars and as I am unable to inspect them, I have to rely on photos and description. MY BIG ISSUE with Grays is with their auto accessary/general goods items that are listed as 'retail returns' as a lot of these items have faults that make them worthless. They should list all faults if any.

 

[Lia]

It is not only about cars. They do not explain some items they sell are damaged. I have stopped buying from them about 2018 as every time I bought something there was a problem. The waiting time on the phone and by email was awful. Whilst we are all looking for bargains we don’t want to waste our hard earned money buying something that we have to fix or throw out.

 

[gordon1940]

About time, when are they going to be forced to tell the truth about the cars they sell, nearly all the listing's are bogus, then when you buy them and find they're junk after paying good money they won't take them back, I fukn hate Grays.

I empathise a d sympathise with you. However, let us all NOT forget the law of “ Caveat Emptor “ let the Buyer beware. Always endeavour to research BEFORE buying.

 

[Ngarmada]

"I empathise a d sympathise with you. However, let us all NOT forget the law of “ Caveat Emptor “ let the Buyer beware. Always endeavour to research BEFORE buying."

As someone reputably accredited in management to an advanced level, I can reliably inform others, the principle of "caveat emptor" has been hijacked, since 2003;
- when the former Howard Govt replaced Professor Alan Fels with Graeme Samuel, to lead the ACCC, and,
- stripped it according to the neoliberal platitude of 'cutting red tape' to improve efficiency, including cost cutting,
- according to the economic mismanagement sophistry, that purports,
> if only 5% of industry is demonstrated corruptly larcenous, then,
> only the same pro rata % of regulatory application is required to be committed to industrial regulation oversight, as coincidentally,
> allowing 'market freedom' to neoliberally prosper from effective self regulation, that,
> will inevitably find its own 'equilibrium.'

Well, John Howard will go down in posterity, as the man responsible for squandering the greatest economic boom the country has ever witnessed,
.... upon tax cuts industry and the wealthy benefitted from mainly, and for the purpose of getting himself re-elected.

And that's how the current industrial 'gangsters paradise' was created in this country, as defined by the extreme consumer outcomes that keep being observed more outlandish as every new industrial scandal emerges.
.... And of course, 2 decades of Coalition Govts in the last 25 years hasn't helped, neither.

Alternatively, when Prof. Alan Fels, a statistician, was appointed Chair of the ACCC after he assisted in its establishment in 1995, he went on during his 8 year term,
.... to be publicly polled 3rd most popular Australian, owing to his outstanding success in prosecuting corrupt industry entities swindling the consumer market.
.... That public commendation has not been eclipsed since its remarkable observation of this Govt bureaucrat.

The period realised the Australian economy buoyant, for obviously,
.... consumer confidence was vibrant during the period, for the consumer market was confident the Federal Govt 'had its back.'

It also observes a key principle of scientific management application, as differentiated from the sophistry of neoliberal economic BS, as essentially defining;
- economic prosperity is delivered from healthy markets, that are so produced from their observation of equitable distribution of wealth.

Comparatively, Graeme Samuel, and the ACCC Chairs who have followed him, are notable only for their compounding of the ACCC 'train wreck' that observes consumer confidence in this country, now 'howling in the doghouse.'

Current Update;
- so the current Albanese Govt has reappointed Prof. Fels to investigate the cost of living issue, and,
- has also appointed former Rudd/Gillard Govt Minister, Craig Emerson, as,
> 'Independent Reviewer' of the Food & Grocery Code of Conduct, observing,
> although Emerson was the Minister for oversight of the ACCC, in the previous Rudd Govt back in 2007,
.... if you think that defines a credible independent review appointment, then I suggest you need a lot of work on your critical analysis application.

For Prof. Fels is the only professional with 'runs on the board' of note applying to the primary market issue, unless you agree, with;
- Graeme Samuel whom recently disagreed with Prof. Fels on breaking up industry oligopolies, that hijack the consumer market,
> with profiteer price gouging, and cartel behaviour, while coincidentally,
> Samuel sits on the Board of the Qantas oligopoly.
- Or with Anthony Albanese, PM, whom reckons with his economics degree, such drastic measure as dismantling oligopolies is wrong, because this country is not the former USSR.
- Or with former ACCC head, Rod Sims, whom chaired the ACCC for 11 years from 2011-22, and,
> recently made some damning claims against industry oligopolies in this country, just,
> never appeared to meaningfully apply himself to the issue during his decade tenure as head of the ACCC?
> This is the economist whom conceded during his ACCC leadership, that privatisation wasn't economically prospective,
> which begs the burning question of what he had been doing for the previous 30 years?
> And we shouldn't mention one of the plethora of energy reviews commissioned by one of the former Coalition Govts, that Sims oversighted as ACCC Chair,
>> that was instigated upon mounting energy consumer pressure, where,
>> that former Coalition Govt ostensibly repaired to its avoidance of potential retribution from an 'energy voting pitchfork lynch mob,'
>> by conferring upon the ACCC extraordinary powers to conduct its energy review investigation, that,
>> realised its recommendation of a convoluted "netback energy price" as a standard for setting domestic energy prices, that,
>> the internationally recognised IEEFA, found was 50% too high.

Then maybe it's karma observed, of Woolworths CEO, Brad Banducci, 'falling upon his sword' 2 days after the 'train wreck' interview he participated in on the ABC, 4 Corners program?

Just whatever it is, it's time these 'high paid neoliberal economic seat warmers were sent packing,' so the Australian economy can 'get a fair go,' along with the majority of people who contribute to it.

For the global neoliberal economic Ponzi scheme is unravelling as I write, owing to the unprecedented global debt it has accrued since its global neoliberal adoption back in the 1980s,
.... that is now so exorbitant of its economic excess, its debt is irredeemable, as irreconcilable.

It means the global inflation crisis impacting your cost of living standards, wasn't just caused by the Covid pandemic, and exacerbated by the Ukraine war,
.... but retaining a source even more insidious.
.... It's why you need to follow the competent economic analysis of Prof. Fels.

Profiteering is driving inflation, says former ACCC head. And here's the hard evidence

Want evidence that inflation is caused by price-gouging corporations? Allan Fels has it in spades.

www.crikey.com.au

'Rearranging the deckchairs on an economic cultural titanic,
.... only gets you a better view of the iceberg.'

 

[Robbo3006]

I empathise a d sympathise with you. However, let us all NOT forget the law of “ Caveat Emptor “ let the Buyer beware. Always endeavour to research BEFORE buying.

Doesn't matter how much you research of they.lie, why do you need to make that comment? Trolling for reactions, well you got one, read the fukn thing.