Advertising practices in the motor vehicle industry have improved considerably following last month's warning from the Australian Competition and Consumer Commission, ACCC Chairman, Mr Graeme Samuel, said today.
"The ACCC is pleased to see the rapid response to rectify the concerns it raised with the industry", he said. "Consumers deserve the whole truth and get annoyed when important terms are hidden away in fine print qualifications".
An ACCC assessment earlier this year showed a high level of non-compliance in motor vehicle advertising.
"This was despite the issuing of Guidelines for Pricing in the Motor Vehicle Industry* which was circulated throughout the industry. Problems included advertisements with fine print qualifications that:
had inadequate font size
were printed in colours with insufficient contrast to the background
lacked sufficient information about additional fees and charges to enable consumers to assess the full price required to buy the vehicle, and
had information about additional fees and charges that were isolated from the main price representation.
"Another problem was the use of pictures of expensive cars that are not available at the prices advertised. Both print and television advertising were deficient.
"The ACCC will monitor motor vehicle advertising. Recalcitrant companies risk formal legal action if the obligations imposed by the Trade Practices Act 1974 are not met. The ACCC will continue to work with the industry to improve advertising practices".
Media inquiries
Mr Graeme Samuel, Chairman, 0408 335 555
General inquiries
Infocentre 1300 302 502
Release # MR 312/05
Issued: 16th December 2005
Background
*The Guidelines for Pricing in the Motor Vehicle Industry* explain provision of the Trade Practices Act 1974 most relevant to industry, including prohibition against misleading and deceptive conduct; price representations; the use of qualifications and disclaimers in pricing; and bait advertising. It reflects not only recent court decisions, but also changes to industry practices and was developed after consultation with stakeholders across the motor vehicle, advertising and publishing industries and consumer advocacy groups. The guideline is part of an ACCC series that educates businesses about their rights and obligations. It is available from the ACCC website or from all ACCC offices in capital cities and Townsville.
