Misleading advertising by a major Townsville motor dealer, Mike Carney Motors Pty Ltd, has led to court-enforceable undertakings being given to the Australian Competition and Consumer Commission.
Mike Carney Motors conducted the advertising campaign in rural and regional Queensland in the Queensland Country Life and the North Queensland Register newspapers. The ACCC action followed a small business consumer complaint. The ACCC found that Mike Carney Motors had placed two advertisements in the papers on 5 July 2001 for 15 Toyota Diesel Hilux 4 x 4 utilities with a steel drop side body. The advertisements showed a photograph of a utility with a bull bar and advertised the vehicles at a 'GST inclusive on the road drive away' price of $25,990.
Subsequent inquiries showed the price did not include the Goods and Services Tax nor the bull bar and was not either a GST-inclusive or an 'on the road drive away price'.
The ACCC believed the advertisements risked breaching the fair trading provisions of the Trade Practices Act 1974. The dealer principal, Mr Mike Carney, immediately conceded the advertisements breached of the misleading and deceptive provisions of the Act. Mike Carney Motors has provided court enforceable undertakings to the ACCC. The undertakings provide that Mike Carney Motors will:
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agree to supply the motor vehicle at the advertised price to the consumer who has been genuinely affected by these representations
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place a corrective advertisement in the papers
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implement a comprehensive trade practices compliance program
"The representations involved two key areas that the ACCC has had as a priority for sometime now: GST and rural and regional issues.
"Of particular concern was that advertisement affected a small business which had wanted to buy the utility at the advertised price which was initially denied. This is a clear example of the ACCC assisting small business and moving to protect the consumers in rural and regional Australia".
The ACCC acknowledges the assistance of Mike Carney Motors in promptly resolving this matter. The ACCC urges all businesses across Australia to ensure that their advertising is truthful and presents an accurate picture for consumers.