Commission takes enforcement action against Phoenix Motor Company

November 9, 2015


The Competition and Consumer Protection Commission (“the Commission”) has today published details of enforcement action taken against Phoenix Motor Company. The action was taken following an investigation into the company’s online advertising which was found to have mislead consumers by advertising a false mileage for a car that was for sale.

Misleading consumers in relation to the usage or prior history of a motor vehicle by stating an incorrect mileage is a prohibited commercial practice under the Consumer Protection Act 2007. Following its investigation the Commission issued a Compliance Notice compelling the company to ensure that all future advertising is fully accurate.

Traders should be aware of their responsibility when selling second-hand vehicles. It is essential that consumers are able to rely on accurate information from car dealers in relation to a vehicle’s roadworthiness and its history, including mileage. Traders that mislead consumers about vehicles being sold or who sell defective vehicles are potentially in breach of consumer legislation and are liable to enforcement action, including prosecution, by the Commission. For more information and guidance for businesses on complying with competition and consumer protection legislation visit the Compliance for Business section of


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