Auto Express

Approved used cars shock

● Compensati­on possible for misadverti­sing of one-owner cars

- Martin Saarinen Martin_saarinen@dennis.co.uk @Ae_consumer

Advert ruling means some buyers could claim a refund

MOTORISTS who have unknowingl­y bought ex-fleet, ex-business or ex-rental vehicles from approved-used dealers through misleading adverts could be entitled to between 25 and 100 per cent of the purchase price back in compensati­on, leading lawyers have told Auto Express.

Damon Parker, head of litigation at law firm Harcus Sinclair, said a recent ruling by the Advertisin­g Standards Agency (ASA) now means owners have a “viable case” against approved-used dealers that failed to inform them the car they bought was once run by fleets, rental companies or businesses.

In October this year, the Advertisin­g Standards Agency ruled on behalf of Auto Express reader Ashley Rumbold from Cambridge, who’d complained about two advertisem­ents on Alfa Romeo’s approved-used website. The cars were advertised as having had one previous owner, but it was later discovered both were ex-fleet vehicles.

The ASA said: “If a dealer knew that a vehicle was ex-fleet, because it had previously been used for business purposes, then that was material informatio­n likely to influence a customer’s transactio­nal decision.”

The ruling required the approved-used dealer and Alfa Romeo parent group Fiat Chrysler Automobile­s to ensure future adverts do not omit misleading material. A Fiat Chrysler Automobile­s spokesman told Auto Express it has already introduced interim measures to inform buyers that cars on the company’s approved-used site may be former fleet vehicles. He added: “In the long term, there will be a change to our online systems so that individual vehicle pages will enable the retailer to flag the status of each vehicle advertised for sale.”

An ASA spokesman said the organisati­on is now communicat­ing the message to the rest of the automotive industry: “We are telling advertiser­s they must include informatio­n that they do not currently always include; specifical­ly, if a car is ex-fleet or ex-hire or similar. We’re telling them they need to change that aspect of their advertisin­g. If they need to put in place new functional­ity on their websites to achieve that, then they will need to do so.”

However, the ruling also means that approved-used dealers could be liable to pay refunds to owners who’ve bought ex-fleet or rental cars advertised as being privately owned. Parker said: “The ruling confirms our position that this is a viable claim for people who find themselves misled by dealers.”

The practice of omitting ownership details is in violation of the Consumer Protection from Unfair Trading Regulation­s 2008 act. Parker added: “The interestin­g feature is that the way damages work for breach is that, where you can’t say what the difference in value is [between the market price for a privately owned car and an ex-fleet, business or hire vehicle], you then look at percentage­s.” These vary between 25 and 100 per cent, depending on how severe an omission was made, and how much difference the informatio­n would have had on the sale price.

An industry-wide litigation suit would be tricky, though, according to Parker. “It’s difficult to put a number on the exact number of people affected by this, so we will have to look at the cases on a case-by-case approach,” he said.

Reader Ashley Rumbold has started a campaign ( www.usedcarsca­ndal.co.uk), where drivers who know they’ve been sold a vehicle that was falsely advertised can find out more.

“We are telling advertiser­s they must include informatio­n they do not currently always include“Advertisin­g Standards Agency spokesman

 ??  ?? RULING Alfa approvedus­ed car sales website was ruled to have misled buyers in advertisin­g
RULING Alfa approvedus­ed car sales website was ruled to have misled buyers in advertisin­g
 ??  ??
 ??  ??

Newspapers in English

Newspapers from United Kingdom