4WD hire firm in strife over alleged consumer law breachs

A 4WD company operating in the Darwin and Alice Springs has been taken to court by the Australian Competition and Consumer Commission for alleged breaches of consumer law

The ACCC is now taking the comapny to court. PICTURE: ISTOCK

A 4WD company operating in the Darwin and Alice Springs area has been taken to court by the Australian Competition and Consumer Commission for alleged breaches of consumer law.

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The ACCC took action against Smart Corporation Pty Ltd, which trades as Australian 4WD Hire, last Thursday alleging it used unfair contract terms, engaged in unconscionable conduct, and made false or misleading representations in relation to insurance cover, in breach of the Australian Consumer Law.

“The ACCC alleges that, since 2016, Australian 4WD Hire’s standard form contracts have included unfair terms that allowed it to charge customers for a range of driving behaviours which it claimed would cause excessive wear and tear or damage to its vehicles,” an ACCC statement said.

“These driving behaviours included driving at night outside built-up areas, above the speed limit, or when visibility was poor. Australian 4WD Hire relied on GPS data to determine whether customers had engaged in these driving behaviours.”

ACCC chair Rod Sims said the contract terms were unfair because they allowed the company to charge customers for purported vehicle damage without having to prove any actual damage occurred.

The ACCC also alleges that Australian 4WD Hire acted unconscionably by enforcing these terms against certain consumers and withholding at least $500 of their security deposits for excessive vehicle wear and tear. When customers disputed these actions, the company threatened them with further charges.

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