Scam warning: The ACCC is aware that scammers have been calling people, falsely claiming to help them get a refund from various businesses. They may use this media release about refunds from Grays to convince you that it is genuine. If you receive a call from anyone offering to help you with a refund, hang up immediately. Never give personal information to anyone calling you out of the blue and never give access to your computer or bank account and never click on a link in a text message or open an attachment in an email if you were not expecting the text or email. If you have given information to a scammer or lost money, contact your bank immediately. Report scams to Scamwatch.
The ACCC has instituted legal proceedings in the Federal Court against Grays eCommerce Group Limited, an Australia-wide online auction business, over false or misleading descriptions of hundreds of cars on its site, including about the make, model, features or undisclosed obvious faults with the cars.
Grays has admitted it engaged in misleading or deceptive conduct and made false or misleading representations between 1 July 2020 and 30 June 2022 about the details of cars offered for sale on its online auction site.
It has agreed to make joint submissions with the ACCC to the Court that it should pay a $10 million penalty for the admitted breaches of the Australian Consumer Law.
"At least 750 consumers bought a car from Grays which was incorrectly described. 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, had they known the correct details," ACCC Commissioner Liza Carver said.
Examples of misleading car descriptions included the wrong manufacturing year or transmission system, listing features that the actual car did not have, or failure to mention obvious faults (such as damage to the car or active dashboard warning lights).
Consumers often had to invest significant time and energy in convincing Grays to provide a remedy and were made to wait months for a resolution. Some consumers paid to repair the vehicle that was incorrectly described or re-sold it at a loss.
"The purchase of a car is often a significant financial decision. Consumers rely on their car to get them to work, school or other commitments and they should be able to rely on the description in the auction listing to be correct," Ms Carver said.
"Businesses must not mislead consumers about what they are buying. If they do mislead them, this is a breach of the Australian Consumer Law."
Grays has already contacted some affected consumers to offer redress. In addition, the ACCC has accepted a court-enforceable undertaking from Grays to provide redress to affected consumers. The undertaking will commence once final orders are made by the Court.
Consumers are warned to be alert of scammers pretending to make contact on behalf of Grays to facilitate a refund. Consumers who have queries about eligibility for redress should contact Grays directly.
Grays has co-operated with the ACCC during its investigation, including by agreeing to jointly seek declarations, penalties, a compliance program and costs.
The Federal Court will consider whether to make the orders sought on a date to be fixed.
Background
Grays is a large industrial, auto and commercial eCommerce business, offering a range of industrial, auto, consumer and commercial goods, direct from manufacturers and distributors. Grays' online auction platform is used to sell a range of goods, including motor vehicles by auction.
Images of a sample advertisement highlighting what was incorrect
