Grays eCommerce Group Limited

The Australian Competition and Consumer Commission (ACCC) has accepted a court enforceable undertaking (Undertaking) from Grays eCommerce Group Limited (ACN 125 736 914) (Grays), an Australia-wide online auction business, in relation to admitted contraventions of sections 18, 29(1)(a), 29(1)(g), 29(1)(m) and 33 of the Australian Consumer Law (ACL) in Schedule 2 of the Competition and Consumer Act 2010 (Cth).

Grays admits that between 1 July 2020 and 30 June 2022 (Relevant Period) it made false or misleading representations in listing vehicles for sale on its online auction platform, including about the quality, features, characteristics and/or legal title of vehicles.

The ACCC has instituted proceedings in the Federal Court of Australia against Grays (Proceedings) with an Agreed Statement of Facts and Admissions in connection with Grays’ admitted conduct. Grays and the ACCC will jointly seek relief orders in the Proceedings, including declarations, compliance program orders and a pecuniary penalty of $10 million. The Federal Court will consider whether to make the orders sought on a date to be fixed. The Undertaking will commence upon the making of final orders by the Court in the Proceedings.

The Undertaking includes commitments from Grays that it will:

• review complaints during the Relevant Period concerning a misdescription relating to the described condition or other characteristics of a vehicle purchased by the consumer through the Grays online auction platform and identify consumers that are eligible for redress;
• review consumer contacts received during the term of the Undertaking concerning a misdescription relating to the described condition or other characteristics of a vehicle purchased by the consumer through the Grays online auction platform and inform the consumer whether they are eligible for redress;
• contact and provide eligible consumers with redress within 90 days of the commencement date or date of customer contact;
• appoint an Independent Arbiter to review a sample of Grays’ assessment of consumers’ eligibility for redress and to consider escalated complaints; and
• provide reports to the ACCC about the redress program including the number of redress offers made and accepted by eligible consumers, and the number of consumers assessed as not eligible for redress;
• publish a corrective notice on its website and mobile site regarding these matters and maintain them there for a minimum period of 30 days.