Agrison: Chinese tractor importer fined in Federal Court after ACCC action

After complaints of brakes failing and wheels falling off, Victorian-based Chinese machinery importer Agrison has been dealt with by the Federal Court.

Agrison, which is based at Campbellfield in Victoria, has admitted making false or misleading representations to customers about the warranties and after-sales services.

Victorian-based Chinese tractor and machinery importer Agrison has been fined $220,000 and will have to pay about $64,000 in total to four consumers after being found in breach of Australian Consumer Law.

The Australian Competition and Consumer Commission instituted Federal Court proceedings against AA Machinery Pty Ltd (trading as Agrison) last year after receiving “numerous complaints” from customers who purchased tractors.

“The ACCC took court action after it received complaints from consumers who had experienced multiple significant failures with their tractors, such as faulty hydraulics, brakes failing and parts such as wheels falling off,” ACCC Chair Rod Sims said in a statement about the outcome of the proceedings.

“Consumers rely on the representations made to them when they are looking to buy agricultural machinery, and the warranties given by the supplier and reliability of aftersales service are critical factors for consumers making these expensive purchases.”

Agrison supplies a range of agricultural equipment to Australian consumers, including several models of Agrison branded tractors and wheel loaders, ranging in price from $18,000 to $60,000.

Agrison admitted it made false or misleading representations that its tractors came with a five-year nationwide warranty and that, if the tractor was defective, Agrison would provide a replacement for all defective parts at no cost to the consumer for five years.

However, not all parts were covered for five years or at all, and the full cost was not covered.

Agrison also admitted it misled consumers by representing that it had a national service network accessible throughout Australia and that customers would be able to obtain all necessary spare parts for tractors within a reasonable time if and when required.

However, Agrison did not have a national service network and had no reasonable grounds for making the claim about spare parts.

ACCC said the court found Agrison’s conduct was deliberate and not isolated, having occurred over several years.

“We were concerned that when customers approached Agrison to resolve their complaints, they were unable to contact Agrison, struggled to have their product fixed under warranty and were unable to access the promised national service network or spare parts,” Mr Sims said.

In addition to the penalty, Agrison must do the following:

NOT make any future unqualified representations about the scope or term of the warranty.

PUBLISH a corrective notice on its website, outlining the outcome of the ACCC’s action.

CONDUCT Australian Consumer Law compliance training for its staff.

SET UP an electronic complaints system and provide a report on complaints received and the steps it has taken to resolve them to the ACCC.

The company’s sole director Volkan “Nick” Yokus cannot be involved in any other business that sells tractors for five years, without the ACCC’s consent.

ACCC advises that any consumers affected by Agrison’s misrepresentations should contact the company to resolve their complaint.

An investigation by The Weekly Times last year uncovered complaints of poor quality machinery, second-hand tractors sold as new, no after-sales service or spare parts and many customers with inoperable machines awaiting to be collected for repairs.

An angry customer whose broken-down brand new digger remained on his nature strip for more than 12 months was offered a full refund by the company a week after The Weekly Timesreported his story.

Mark Henshall bought the digger in 2019 for $14,490. However, it began to fall apart soon after delivery before it completely broke down and he was unable to use it.

“It only lasted 30 hours before falling to bits,” he said last year. “The first day it turned up there was a couple of spare bolts lying on the pallet that it came on.”