The Australian Competition and Consumer Commission (ACCC) has recently discovered that car dealers’ price drop advertisements may be deceptive. The regulator found that some dealers were advertising price drops on vehicles that had never been sold at the original price, making the advertised discount misleading.
The ACCC has warned car dealerships to ensure that their advertisements are accurate and not misleading. The regulator has also urged consumers to be cautious when responding to price drop advertisements and to do their research before making a purchase.
The issue of deceptive advertising is not new in the car industry. In 2017, the ACCC took legal action against Ford Australia for allegedly misleading customers about their rights under consumer law. The case was settled out of court, with Ford agreeing to pay a $10 million penalty.
Car dealerships have a legal obligation to ensure that their advertising is accurate and not misleading. This includes ensuring that any price drops advertised are genuine and not simply a marketing ploy to attract customers.
Consumers should also be aware that advertised prices may not include additional fees and charges, such as delivery fees or dealer charges. It is important to read the fine print and ask questions before making a purchase.
The ACCC has also reminded car dealerships that they must comply with the Australian Consumer Law, which prohibits false or misleading representations about the price of goods or services.
In addition to legal action, the ACCC can issue infringement notices and court enforceable undertakings to businesses that breach consumer law. The regulator can also seek compensation for affected consumers.
Consumers who believe they have been misled by a car dealership’s advertising should contact the ACCC or their state or territory consumer protection agency for assistance.
In conclusion, car dealerships must ensure that their advertising is accurate and not misleading. Consumers should be cautious when responding to price drop advertisements and do their research before making a purchase. The ACCC will continue to monitor the car industry and take action against businesses that breach consumer law.
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- Source: https://zephyrnet.com/car-dealers-price-drop-adverts-could-be-misleading-regulator-finds/