Following a Court of Appeal decision today, Auckland Toyota dealer, Giltrap City Toyota, will face a trial to hear allegations that it was involved in price fixing.
Commerce Commission Chairman Dr Bollard said that the Commission is alleging that Giltrap was one of eight Auckland Toyota dealers that breached the Commerce Act by agreeing to limit the discounts available to buyers of new cars.
In the Auckland High Court last December the other seven dealers admitted that at their regular monthly franchise meetings they discussed and eventually agreed on the maximum discounts they would offer to car leasing companies, fleet buyers and private individuals.
The Court imposed penalties of $50,000 against each of these seven dealers.
The Commission continued court action against Giltrap, but the company successfully applied to have the action struck out. The Commission appealed the strike out, and the Court of Appeal released its decision today. The Court of Appeal upheld the Commission's appeal and awarded $5,000 costs to the Commission.
Media contact: Commerce Act Manager Jo Bransgrove
phone work (04) 498 0958
Communications Officer Vincent Cholewa
phone work (04) 498 0920
Commission media releases can be viewed on its web site www.comcom.govt.nz
