ACCC acts on Perth car dealer's GST claims

The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court against a Perth car dealership, Goldy Motors, alleging misrepresentations and false and misleading conduct under the Trade Practices Act 1974.

The allegations concern advertising by Goldy Motors about the likely impact of the Goods and Services Tax and the availability of finance.

The ACCC has alleged that on 14 June 2000 Goldy Motors advised consumers through a print advertisement to buy vehicles before 30 June 2000 because it was their 'Last chance to buy…GST FREE !!'.

The ACCC alleges this advice may have misled consumers as the price of new vehicles was expected to fall with the introduction of the GST on 1 July 2000.

The ACCC alleges advertisement also advised consumers that 'No Finance Application Refused!' and that this advice was accompanied by a very small qualifier 'T.A.P'. The ACCC alleges that the very small size of the qualifier and the absence of a satisfactory explanation that finance applications was only to approved purchasers may have also misled consumers.

The ACCC is seeking court orders including:

• declarations that Goldy Motors has breached the relevant provisions of the Trade Practices Act 1974;
• injunctions preventing Goldy Motors from engaging in similar conduct in the future;
• corrective advertising; and
• refunds for consumers that may have suffered loss as a result of the advertisement.

A directions hearing for the matter is listed for 9 August 2000 at the Federal Court in Perth.