The Federal Court has ordered Grays eCommerce Group to pay $10 million in penalties, in proceedings brought by the ACCC.
Grays has admitted to making false or misleading descriptions of hundreds of cars listed for sale on its website over two years.
The falsehoods, which includes information about the make, model, features and undisclosed faults of 750 cars, is estimated to cost consumers $3.86 million.
Some examples include publishing the wrong manufacturing year or transmission system, listing features that listed cars for sale did not have, and a failure to mention obvious faults, such as damage to the car or active dashboard warning lights.
The misleading car postings occurred between 1 July 2020 and 30 June 2022.
In February 2024, the ACCC accepted a court-enforceable undertaking from Grays to redress consumers affected by its dodgy behaviour. The business has been stung with a $10 million penalty.
Grays said it has already contacted some affected consumers to offer redress.
“Grays made false or misleading representations in at least 750 car descriptions on its website. As a result, hundreds of consumers may have bought a car they would not otherwise have purchased, or may have paid more than they would have, if they had known the correct details,” ACCC commissioner Liza Carver said.
“Affected consumers often had to invest significant time and energy to convince Grays to provide a remedy, and were made to wait months for a resolution. We are aware of some consumers that paid to repair the vehicle that was incorrectly described or re-sold it at a loss.
“Grays’ undertaking to pay compensation to consumers is an important part of the resolution of this matter, and provides a meaningful outcome for affected consumers.”
Grays is an Australian online auction marketplace that lists cars, trucks, motorcycles, industrial and manufacturing equipment, booze, boats and other appliances.
