Carsales Wins Supreme Court Case For Carguide’s Misleading Ad Campaign

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The Victorian Supreme Court has ruled in favour of carsales.com Limited that competitor carsguide.com.au’s recent advertising campaign is misleading or deceptive.

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The Court ruled that the extensive carsguide.com.au media campaign across television, radio, newspapers and billboards made a number of representations which were misleading or deceptive.

Carsguide.com.au advertising campaign included a stunt involving a lightning embossed blimp that was positioned over the Carsales head office in Melbourne, with an accompanying billboard saying: “Let lightning strike those who sell your contact details to dealers.”

carsales.com Ltd CEO Greg Roebuck said: “We saw the carsguide.com.au campaign as trying to damage the relationship of trust that carsales has established with consumers over many years. We see this decision as a win for both us and the consumer, who will now not be subjected to these misleading advertisements.”

carsales’ began legal action after the carsguide.com.au campaign was first aired on June 15.

“We asked carsguide.com.au to stop but it refused. Instead of resorting to tactics similar to those employed by carsguide.com.au in their advertising, we chose to take the matter through appropriate legal channels,” said Roebuck.

“Carsguide.com.au has tried to paint itself as David in a battle with Goliath, when this is simply not the case. Carsguide.com.au is owned by News Corp Australia and some of the largest car dealerships in Australia. We are pleased with this outcome and expect that it will lead carsguide.com.au to take a different and more reasonable and balanced approach to its advertising campaigns in the future.”