The Federal Court has ordered Grays eCommerce Group to pay a hefty $10 million in penalties for making false or misleading representations in the descriptions of hundreds of cars listed for sale on its website between 1 July 2020 and 30 June 2022.

The proceedings, brought forward by the Australian Competition and Consumer Commission (ACCC), found that the business had published incorrect information about the make, model, features or undisclosed obvious faults with the cars.

"Grays made false or misleading representations in at least 750 car descriptions on its website. As a result, hundreds of consumers may have bought a car they would not otherwise have purchased, or may have paid more than they would have, if they had known the correct details," said ACCC Commissioner Liza Carver.

In February 2024, the ACCC accepted a court-enforceable undertaking from Grays to provide redress to consumers affected by this conduct. Grays has already begun contacting some affected consumers to offer redress.

Grays conduct resulted in an estimated $3.86 million in losses to Australian consumers. The company has also been ordered to establish and maintain an Australian Consumer Law compliance program, and to pay a contribution to the ACCC's costs.

"Affected consumers often had to invest significant time and energy to convince Grays to provide a remedy, and were made to wait months for a resolution. We are aware of some consumers that paid to repair the vehicle that was incorrectly described or re-sold it at a loss," Carver said.

Grays, a large industrial, auto and commercial eCommerce business, offering a range of industrial, auto, consumer and commercial goods, cooperated with the ACCC during its investigation, including by agreeing to jointly seek declarations, penalties, a compliance program and costs.