Grays auctions hit with $10 million fine for deceptive conduct
Misleading auction listings on the Grays auction platform have led to a large fine for the company, with more than 750 buyers affected over a two-year period.
Online auction website Grays has agreed to pay a $10 million penalty following allegations of "misleading conduct" by the federal consumer watchdog
The Australian Competition and Consumer Commission (ACCC) filed proceedings against Grays in Federal Court, claiming at least 750 vehicles purchased from the company between 2020 and 2022 were incorrectly described.
Grays agreed it had engaged in misleading or deceptive conduct and made false or misleading representations about the cars offered for sale, which included displaying the incorrect year of manufacture, listing features which were not fitted, and failing to mention obvious faults – such as damage or warning lights.
According to the ACCC, buyers often had difficulties in securing a remedy from Grays after purchasing vehicles with incorrect listings – with some customers repairing the cars themselves to sell at a loss.
"At least 750 consumers bought a car from Grays which was incorrectly described," ACCC Commissioner Liza Carver said in a written statement.
"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."
While Grays will be contacting affected customers in the future to provide a remedy for their actions, the ACCC has warned the public to be alert for scammers pretending to be Grays during this time.