The Melbourne Magistrates’ Court declared that both motor car trader Frankston Car City Pty Ltd and its sole director and shareholder, Liron Serbi, had:
(a) engaged in misleading or deceptive conduct, contravening the Australian Consumer Law (Victoria), by falsely claiming that the company was a licensed motor car trader
(b) engaged in unlicensed motor car trading, contravening the Motor Car Trader’s Act 1986, by buying, selling and offering to sell motor cars without being licensed under that Act to do so.
In addition, the court granted final injunctions to restrain the company and Mr Serbi from such future contraventions and ordered that they pay for the publication of the court outcome on their website and at their business premises in Frankston.
In July 2012, Consumer Affairs Victoria staff became aware that the company may be operating as an unlicensed motor car trader. It used an unregistered business name – Frankston Car City – and quoted two motor car trader licence numbers, identifying traders unconnected with either Mr Serbi or the company and which licence numbers neither the company nor Mr Serbi were entitled to use.
On 21 September 2012, Consumer Affairs Victoria obtained interim injunctions and publication orders:
- restraining the company and Mr Serbi from further contraventions of the Motor Car Traders Act 1986
- to publish a notice, both on the company’s website and at the company’s business premises explaining the nature and effect of the injunctions
- to remove all references to the licensed motor car traders from the company’s website.
On 4 February this year, the court upheld the Director of Consumer Affairs Victoria case against the company and Mr Serbi declaring that Frankston Car City and Mr Serbi had operated as unlicensed motor car traders and had engaged in misleading or deceptive conduct.
The court ordered that until they become licensed to do so, Mr Serbi and Frankston Car City must refrain from:
- buying, selling or exchanging motor cars
- advertising motor cars for sale or exchange, or
- inviting offers or making offers to treat regarding the purchase, sale or exchange of motor cars.
The court also ordered Frankston Car City to:
- publish a notice on its website and at its business premises, informing the public that it is not permitted to trade in motor cars
- remove any sign, poster, notice or other marker at its premises, and references on its own website or links to other websites, suggesting that it is a licensed motor car trader, until it becomes licensed.