As dealers begin their annual ‘End of Financial Year’ (EOFY) sales advertising campaigns, the AADA takes this opportunity to remind all dealers of their obligations to ensure they are adhering to the Australian Consumer Law (ACL) when advertising a price or vehicle capability. Recent activity by the Australian Competition and Consumer Commission (ACCC) indicates that the regulator is particularly sensitive to areas of product pricing and discounting as well as where false and misleading statements are being made that may disadvantage consumers.
New and used vehicles – how can they be price advertised?
Vehicle advertising at a dealership can be done by dealers, OEMs or both as part of a cooperative program, but in all cases all advertising must comply with the ACL. This includes genuine price discounting.
To ensure that your dealership(s) comply with the ACL you should refer to the ACCC publication ‘Pricing manual for the motor vehicle industry‘. Dealers should ensure that any external advertising or marketing agency you are working with are also provided with a copy of the ACCC pricing manual.
Recent ACCC proceedings against retailers
The importance of complying with the ACL guidelines when advertising the sale of a vehicle (new, used or demonstrator) with regards to a discount, vehicles price and capabilities has magnified when we consider the decision handed down in the Federal Court of Australia case on 14 May 2026 with regards to Coles Supermarkets Australia and its ‘Down Down’ discounts.
What does this mean for dealers?
The ACCC motivation for bringing this case before the courts was done so in the public interest. The fact that such a case was bought forward and that focused on the supermarket sector does not mean that Australian dealers should take their attention away from what advertising offers they, and their agents, are placing before consumers when it comes to advertising a special or discounted price on a new or used motor vehicle, or service offering.
Dealers should review the tone and messaging in their advertising practices. This may help prevent the scrutiny of the ACCC and other state-based regulators alleging false or misleading practices, including price advertising. Dealers should ensure that all of their advertising campaigns meet the ACL guidelines and does not make any false representations to a potential purchaser.
A false representation is one that is incorrect or contrary to fact. As with the prohibition on misleading conduct, your intention to deceive or otherwise is irrelevant. You may breach these provisions regardless of whether your actions were deliberate or whether you did not know the representation was false at the time of making.
What has been the ACCC’s specific position regarding false and misleading representations when advertising certain models of vehicles?
The ACCC is on the record as stating that if a vehicle is depicted in advertisements in a particular setting, or claims are made about it, that consumers have a right to expect such images and words reflect the intended use of the product.
The ACCC also state that a new car is a significant financial purchase, and consumers rightfully expect that the vehicle they purchase will live up to the quality and uses that it was advertised to include.
It is the AADA’s position that the ACCC and the state-based offices of fair trading increase their surveillance on the private-to-private market advertising of vehicles that appear on different online classifieds provider platforms. The AADA will continue engaging with these agencies to ensure that generic online classifieds platforms are held to appropriate standards and that consumer protections are applied consistently across the market.
