Yahoo Finance Dealers busted selling recalled cars
The consumer watchdog has fined three car resellers for selling or advertising recalled vehicles.
Car dealership companies Berwick Motor Group (also known as BMG) and HG Innovations have been ordered to pay fines in response to allegations from the Australian Competition and Consumer Commission.
Auctioneer Grays was the third merchant involved.
In one instance, the ACCC alleged BMG sold via Grays a 2003 Nissan Pulsar under active recall because of a high-risk Takata Alpha airbag.
"The ACCC was particularly concerned about this alleged conduct, as Alpha airbags have a very high risk of rupture, which can cause serious injury or death," stated the watchdog.
Grays also faced allegations it advertised a 2005 BMW 3 and a 2002 Honda Jazz, both also under active recall due to dangerous airbags.
ACCC deputy chair Delia Rickard urged all consumers to check their old cars have not been recalled.
“If your vehicle has an Alpha airbag, you must stop driving immediately and contact the vehicle manufacturer or your dealer,” she said.
Grays paid penalties totalling $37,800, while BMG and HG Innovations each paid $12,600.
Defective Takata airbags have caused four incidents in Australia. A death and a serious injury were recorded in BMW models, while a death and a serious injury have occurred in Toyota cars.
Toyota, Mazda, Suzuki, Honda and Mitsubishi all declared earlier this month that they would buy back old cars that were affected by the faulty airbags.
“These airbags could injure or kill people in the car by misdeploying in an accident and propelling parts or metal fragments into the cabin of the vehicle at high speed,” said ACCC acting chairperson Stephen Ridgeway.
"The airbags have also, in some instances, not fully inflated in a crash, thereby failing to protect drivers as expected."
Find out if your model has been affected here.
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