Car dealer fails to include all charges in advertisement

A Western Australian motor vehicle dealer, Southern Motors Pty Ltd, trading as Jason Mazda, has provided court-enforceable undertakings to the Australian Competition and Consumer Commission to resolve concerns that the company had failed to include all charges applicable to the advertised price of its Mazda motor vehicles.

In an advertisement on a single page leaflet for various Mazda motor vehicles inserted in the 28 February 2006 Western Suburbs Weekly Community Newspaper, Jason Mazda failed to include dealer delivery charges that were payable in addition to the advertised purchase price.  In the ACCC's view, the omission may have contravened the consumer protection provisions of Trade Practices Act 1974.

Jason Mazda cooperated with the ACCC and immediately took action to ensure such omissions would not occur again.  Jason Mazda has given court-enforceable undertakings that it will:

• in all future advertisements and marketing, disclose any dealer delivery fees that are payable, and which have not already been included in the advertised price
• publish a corrective notice in the Western Suburbs Weekly Community Newspaper advising consumers of the omission in its previous advertisement, and
• strengthen its existing corporate trade practices law compliance program to ensure similar potential breaches of the Act do not occur in the future.

"Jason Mazda's error highlights the need for businesses to be careful when they are putting together advertising material and ensure all relevant pricing information is included", ACCC Chairman, Mr Graeme Samuel, said today.

The action follows the circulation throughout the industry of the ACCC's Guidelines for Pricing in the Motor Vehicle Industry and a similar action taken recently by the ACCC against another Perth motor vehicle dealer.

"Advertising in the industry is improving but, as this matter demonstrated, more work is needed to be done to lift the overall standard of compliance.

"Considerable effort was made to ensure the guidelines provided simple and practical advice for those in the industry to enable them to readily comply with their obligations under the Act.

"The ACCC will continue to monitor the motor vehicle industry to ensure compliance", he said.