Increase in dealer complaints
There has been an increase in consumer complaints relating to motor vehicle dealers, according to a recent report that explores issues facing New Zealand consumers.
The Commerce Commission's (the Commission) Consumer Issues Report for the year to June 30, 2018 helps the Commission to better understand the potential issues facing Kiwi consumers and where there is likely to be the greatest harm.
Commissioner Anna Rawlings said the report takes a detailed look at the 7,452 complaints the Commission received during the financial year and describes a range of trends.
In the year to June 30, the motor vehicle retail industry generated 420 complaints to the Commission, an increase of almost 17 per cent over the same period a year before.
The report states that consumers allege that car dealers have provided misleading information about the cars they are selling. This issue was mentioned in 242 complaints.
Allegations include that traders neglected to mention that major mechanical work was required on a vehicle, or denied work was required when the consumer raised a problem with the vehicle, and a trader stated that a specific part had been repaired or replaced when it had not.
Many consumers also reported that they have experienced a problem with a car they purchased. They alleged that when they tried to claim a remedy from the seller, they were given misleading information about their right to a possible remedy under the Consumer Guarantees Act.
“Issues relating to motor vehicle sales have increased by 17 per cent year on year. The majority of complaints are about second-hand sales and are spread across a wide range of traders. This sector is one of our 2018/19 priority focus areas that we will be targeting through both enforcement and increased education,” said Rawlings.
“Retail telecommunications remains the most complained about industry, though complaint levels are relatively flat year on year," added Rawlings
"Online sales generated nearly a quarter of all Fair Trading Act complaints, highlighting the growing size of this market and the challenges for consumers purchasing goods from overseas-based companies in particular. Both the telco and online retail sectors are priority focus areas for us."
In relation to consumer credit, complaints continue to be received about issues such as irresponsible lending, debt collection and the reasonableness of fees.
“We are continuing to focus on compliance with consumer credit laws and are prioritising the investigation of irresponsible lending practices because of the significant harm it can cause already vulnerable consumers,” Rawlings added.
“In the competition area we have also noted a rise in complaints regarding regional ports, primarily relating to the conduct of ports in competitive markets for the supply of services. We are looking into some of the allegations raised and will be maintaining a close watch on this sector over the next year.”
The full report and infographic illustrating the key findings can be found on the Commission’s website.
