Auckland car dealer Fastlane Auto Ltd has been fined $18,000 and ordered to pay $800 in costs after breaching fair trading rules.
In Waitakere District Court on Friday the company was fined by Judge Josephine Bouchie for breaching the Fair Trading Act.
Commerce Commission fair trading director Deborah Battell said it laid
charges against Fastlane for failing to adequately disclose that a $5000 minimum trade-in offer didn't apply to all vehicles on its yard.
The company had also failed to tell customers that its financial terms were not readily available as advertised.
Ms Battell said Fastlane made the claims through advertisements in the Auto Trader magazine between January and July 2000.
"Misleading claims are unfair on consumers and competitors," Ms Battell said in a statement today. "Consumers, enticed to a business by misleading advertising, may be disadvantaged because they could have got a better deal elsewhere."
In sentencing, Judge Bouchier said that the advertisements were clearly misleading.
- NZPA
