Perth car dealer prevented from selling on consignment after being charged (Xoticar / PAG (WA) Pty Ltd / Myhung Nguyen / Zeljko Grujin)
A Perth car dealership which specialises in selling vehicles on consignment as well as a salesperson involved in managing the business have been banned by Consumer Protection from conducting consignment sales.
The move to restrict the licences to prevent consignment sales comes as charges are to be heard against the company, its Director and the employee/manager.
PAG (WA) Pty Ltd, trading as Xoticar of Welshpool, sole Director Ms Myhung Nguyen and salesperson/manager Mr Zeljko Grujin are each facing sixteen charges in breach of the Motor Vehicle Dealers Act (MVDA) and four charges in breach of the Australian Consumer Law (ACL).
It’s alleged that the dealership did not comply with consignment laws under the MVDA by:
- Accepting a vehicle on consignment without a written agreement;
- Failing to deposit the proceeds of consignment sales into a trust account no later than the next business day; and
- Failing to pay the net proceeds of the sale to the owner within two business days of receiving the payment.
The Commissioner for Consumer Protection further alleges the ACL was breached when false or misleading representations were made to four vehicle owners regarding the sale price, enabling the dealership to gain a higher profit.
PAG took action in the State Administrative Tribunal (SAT) to put a hold on the Commissioner’s decision to restrict their licence to prevent them from engaging in consignment sales. On 28 June 2018 the SAT decided to uphold the Commissioner’s decision to restrict PAG’s licence, pending the outcome of the current charges and a final determination by SAT.
Despite this SAT outcome, Mr Grujin obtained his own dealer’s licence and sought to continue the consignment sales’ activities of the business under a new business name that he established, Xoticar Auction House. On 14 September 2018 the SAT decided to uphold the Commissioner’s decision to also restrict Mr Grujin’s licence, pending the outcome of the current charges and a final determination by SAT.
Commissioner for Consumer Protection David Hillyard said all vehicles currently on sale under consignment agreements with PAG (WA) Pty Ltd, Xoticar or Xoticar Auction House will be returned to their owners by 28 September 2018.
“While the motor vehicle dealers’ licences of PAG, Xoticar and Mr Grujin remain in place, they will be unable to engage in any consignment sale arrangements until the SAT and Magistrate Court matters are finalised,” Mr Hillyard said.
“Despite the condition imposed on their licences not to engage in consignment sales, Xoticar can continue to sell used vehicles that they have purchased. However, the future of these licences will be reviewed upon conclusion of the prosecution actions.”
“Customers who have any issues with this dealership should contact Consumer Protection.”
For more information regarding the laws covering the selling of vehicles on consignment, go to the Consumer Protection website www.consumerprotection.wa.gov.au or enquiries can be made by email firstname.lastname@example.org or by calling 1300 30 40 54.
Media Contact: Alan Hynd, (08) 6552 9248 / 0429 078 791 / email@example.com