Brisbane-based Denmac Ford car retailing group will offer good-will vouchers to each of the buyers who may have been misled by an advertising error.
The Australian Competition and Consumer Commission has accepted a proposal from Denmac that will also include improved procedures for checking the company's advertisements.
"Denmac admitted that it had accidentally stated a pre-sale 'recommended retail price' for a Ford Focus model that was more expensive than the one on sale", ACCC Chairman, Mr Graeme Samuel, said today.
"This could have misled potential buyers into thinking they would save more money, by buying during the sale, than was actually the case.
"It is a timely reminder for businesses that it is no defence to say 'I made a mistake and didn't intend to mislead consumers'. Advertising must be accurate and the ACCC is always monitoring to ensure that consumers are not misled".
The Denmac advertisements ran in Saturday editions of the Courier Mail and Queensland Times newspapers in January 2006. This came hot on the heels of the ACCC's warning to the motor vehicle industry that its advertising was under the spotlight.
In resolving the matter, the ACCC acknowledged Denmac's positive attitude to improving internal advertising procedures and its overall commitment to adopting the principles outlined in the ACCC's Guidelines for pricing in the motor vehicle industry.*
The vouchers will entitle 10 potentially affected people who bought cars during this time to $500 worth of Denmac vehicle servicing and parts.
Media inquiries
Mr Graeme Samuel, Chairman, 0408 335 555
General inquiries
Infocentre 1300 302 502
Release # MR 057/06
Issued: 13th March 2006
Links
Guidelines for Pricing in the Motor Vehicle Industry
Background
*The Guidelines for Pricing in the Motor Vehicle Industry explain provisions of the Trade Practices Act 1974 most relevant to the motor vehicle industry, including the provisions relating to misleading or deceptive conduct; price representations; the use of qualifications and disclaimers in pricing; and bait advertising.
It reflects not only recent relevant 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 which educates businesses about their rights and obligations. It is available on the ACCC website, and hard copies can also be obtained from the ACCC offices.
