The Unfair Commercial Practices Directive is being introduced later this month, and Experian®, the global information services company, today urged used car dealers to ensure that they take the necessary steps to prepare for its arrival.
The new directive aims to tie together and raise the standard of all trading laws in all EU Member States. If a company fails to provide information that a consumer would need to make an informed decision, under the directive this is classed as a breach and could lead to a fine and possibly up to two years in prison. The Directive will oblige businesses not to mislead consumers through acts or omissions; or subject them to aggressive commercial practices such as high pressure selling techniques.
In terms of the used car market, Experian predicts that the new directive is likely to put even more pressure on dealers to ensure precautions, such as vehicle provenance checks, are undertaken. Dealers must ensure that they fulfil the promises made by the manufacturers, otherwise both the dealer and the manufacturer could be held liable.
Kirk Fletcher, Managing Director of Experian’s Automotive division, said: “The scope of the new directive is still unclear and open to interpretation, so the full impact on the automotive industry is yet to unfold. However, we strongly recommend that dealers need to make sure that customers are provided, in a clear and transparent fashion, with all the information about a vehicle’s status. Given that our own research has shown that consumers are willing to pay more for peace of mind, it simply underlines the importance of ensuring critical information is provided at the outset so customers can make an informed decision.
“This is especially vital at a time when there is increased media attention on protecting consumers from rogue dealers. Already this year we have seen an increase in the number of stories hitting the press about dealers getting fined for selling clocked cars. Furthermore, during last year the biggest source of consumer complaints was the used car sector.”
Faye Sunderland
