An Auckland car dealership has been fined $18,000 for misleading customers over a "zero per cent interest" finance rate.
Tristram European Limited was fined yesterday in the North Shore District Court after pleading guilty to five charges of breaching the Fair Trading Act.
The breach occurred during a campaign which
ran in newspapers, on Trade Me and on the North Shore company's website in late 2008 and early 2009.
The promotion offered "zero per cent interest" finance on its new and used stock but two customers inquiring at the car yard were told the offer was only available on the full retail price of the vehicles.
They were also told that a lesser price could be negotiated for cash or for a sale on interest-bearing terms.
The Commerce Commission's fair trading manager, Wellington, Greg Allan said it had been well established through the courts that to avoid the risk of breaching the act, interest-free prices should be the same as cash prices.
"While businesses are able to set their own prices for goods and services, when they advertise that something is interest free it must be exactly that. They cannot build the cost of any interest into the price charged to customers.
"This case is a reminder to businesses that information about their prices must be accurate and not have the potential to mislead customers."
The Commerce Commission said the company also failed to disclose in its advertising that there was a $350 establishment fee payable for a vehicle purchased on interest-free terms.
In sentencing the company Judge David McNaughton said the breaches were deliberate and calculated but there was no demonstrated loss to consumers.
Tristram European general manager Greg Leet could not be reached for comment last night.
- staff reporter
