Autofile December 2016

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The TrusTed voice of The auTo indusTry for more Than 25 years

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December 2016

Dealer fined $105,000 for false representation Manurewa car dealership gets slapped with a massive fine for falsely representing its cars as being AA appraised

A

massive fine of $105,000 has been handed down to car dealership, Zodiac Motor Company Limited (Zodiac). The court case took place at the Manukau District Court and was attended by sole director of Zodiac, Nezam Anwer. The company was charged for making false claims that the dealership’s cars were AA appraised and that the company was an AA Appraised Used Dealership. Anwer entered into undertakings with the Commission that he would pay any part of the fine that the company did not pay. “A large fine demonstrates that the Commerce Commission takes seriously any elements of false representation when selling used cars and [the Commission] understands the trust that consumers put into the AA Appraisal scheme,” says AA general manager motoring services, Stella Stocks. Anwer pleaded guilty to six charges brought by the

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Stella Stocks, of the AA, says Zodiac Motor Company should not have been promoting itself as an AA Appraised dealer

Commission under the Fair Trading Act 1986, which related to false representations over the course of a year that vehicles advertised for sale by Zodiac were AA appraised and that Zodiac was an AA Appraised Used Vehicle dealer when neither statement was true. Although Zodiac became an AA Appraised Used Vehicle Dealer in 2012, it was removed in 2014 due to the management’s failure to ensure that at least 70 per cent of the stock was AA appraised, as required under the programme.

“The dealer had been removed from the AA Appraisal scheme some time earlier, because it didn’t comply with the requirements of the programme. At that point they should not have been promoting [the dealership] as an AA Appraised dealer in any way,” says Stocks. Even after Zodiac became aware that AA had cancelled its membership as an Appraised Used Vehicle Dealer, the company continued to promote itself on radio advertising as an authorised dealer. Zodiac also

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