Rotorua car yard disputes severity of Fair Trading Act breaches

A prominent Rotorua car dealer has admitted 16 charges of breaching the Fair Trading Act by failing to display signs in its cars.

Growth Investments, which trades as Warehouse Cars on Fairy Springs Rd, claims there was no intention to deceive customers but admits that at the time Commerce Commission investigators visited its car yard last November, some cars were not displaying notices providing prices and vehicle details including age, make, model and mileage.

Yesterday, Growth Investments company director Nigel Marshall appeared in the Rotorua District Court on behalf of the company and through his lawyer Jonathan Temm pleaded guilty to the charges. When approached outside the court by the Daily Post Mr Marshall said he did not want to comment. Mr Temm told the court the information cards were being updated when investigators from the Commerce Commission inspected the car yard on November 16 last year.

There was no deception on behalf of the company and the breach of the act was a technical one, he said. He told the court that according to the records he had seen there were 300 cars in the yard on that day.

Auckland lawyer Claire Paterson who appeared on behalf of the Commerce Commission said there were 150 cars in the Fairy Springs car yard that day and half of them were not displaying signs.

However, Mr Temm said the company was adamant there were only 16 cars which did not have the signs. If the commission had found there were more it should have charged the company accordingly, Mr Temm submitted.

Ms Paterson said customers were entitled to be able to see the signs and not displaying them could lead to other car dealers suffering a competitive disadvantage.

There were ways for companies to avoid breaching the act, including making up new signs and then switching them with the old ones.

Judge Chris McGuire said the facts which were disputed would need to be argued at a hearing. He adjourned the case until January 15 and the company will not be sentenced until that hearing.

Meanwhile, another Rotorua company, Robmac Holdings, has also been charged with breaching the Fair Trading Act. The case has been adjourned to October 19.