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Motor Me warned for misleading conduct

Posted on 25 January, 2018

The Commerce Commission (Commission) has been investigating under the Fair Trading Act, Brent Smith’s conduct as the owner and operator of the Motor Me business. The investigation relates to Motor Me's conduct as a motor vehicle dealer selling vehicles on Trade Me, its website and through its car yard in Onehunga, Auckland. Smith has been warned by the Commission that he has likely breached the Act for misinforming consumers about the quality, history and AA endorsement of the cars offered for sale. Complaints included that a car was advertised as having less mileage on the odometer than it did; that a car was advertised as having an AA tick and safety certification when it did not; and that a car was in good condition, inside and out, when in fact it was not.  Competition General Manager Antonia Horrocks said the Commission has received a significant number of complaints about motor vehicle retail and sales. “Purchasing a vehicle is a significant spend for a consumer and compliance with the Fair Trading Act by car dealers is important when advertising motor vehicles. If you are selling a vehicle you must describe it accurately, including relevant information about its quality, history and any endorsements or benefits.” “In this case, three of the complainants provided evidence to us that the relevant vehicle’s physical condition and mechanical performance was of lower quality than represented to the customer through Trade Me listings or email correspondence,” she said. The complainants included in this investigation have confirmed that they received either a partial or full refund from Motor Me after disputing the vehicle representations initially made to them. You can view a copy of the warning letter issued to Mr Smith here.