Sydney, July 18: The Federal Court has ordered Grays eCommerce Group Limited, a nationwide online auction business in Australia, to pay $10 million in penalties following proceedings initiated by the ACCC. Grays admitted to making false or misleading representations in the descriptions of hundreds of cars listed for sale on its website from July 1, 2020, to June 30, 2022.
These misleading descriptions involved incorrect details about the make, model, features, or undisclosed faults of the cars.
Examples included inaccuracies such as the wrong manufacturing year or transmission system, listing non-existent features, and failing to mention obvious faults like damage or active dashboard warning lights.
In February 2024, the ACCC accepted a court-enforceable undertaking from Grays to provide redress to affected consumers.
Following the Court’s orders, Grays has begun contacting some consumers to offer compensation.
“Grays made false or misleading representations in at least 750 car descriptions on its website. 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,” ACCC Commissioner Liza Carver said.
“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.”
“Today’s orders by the Court reflect Grays’ serious conduct, which caused 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,” Ms. Carver said.
In addition to the penalties, Grays has been ordered to establish and maintain an Australian Consumer Law compliance program and to contribute to the ACCC’s costs.
Grays cooperated with the ACCC during the investigation, agreeing to jointly seek declarations, penalties, a compliance program, and costs.
Media & PR: editor@dailystraits.com. Copyright 2021–Present DailyStraits.com. All rights reserved.