Victorian tractor and wheel loader dealer Agrison has been fined $220,000 for misleading customers.
The federal court has found AA Machinery Pty Ltd, which trades as Agrison, breached Australian Consumer Law by making false or misleading representations to customers about warranties and after-sales services.
Agrison has also been ordered to pay redress to four consumers that bought tractors or wheel loaders, adding up to about $64,000.
In handing down his judgement, Justice Bernard Murphy said "Agrison's conduct was deliberate and it was not isolated, having occurred over several years".
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.
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Justice Murphy said the court ordered Agrison not to make any future unqualified representations about the scope or term of the warranty.
Agrison was also ordered to publish a corrective notice on its website.
The Australian Competition and Consumer Commission initiated federal court proceedings last year after receiving complaints from consumers about Agrison.
"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 chairman Rod Sims said.
"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 after-sales service are critical factors for consumers making these expensive purchases."
Mr Sims said the case was a reminder for all businesses that they cannot make representations about warranties and after sales services without the ability to back up their claims.
"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," he said.
Agrison and its sole director, Volkan 'Nick' Yokus, also provided the ACCC with a court-enforceable undertaking.
As a result, Mr Yokus cannot be involved in any other business that sells tractors for five years, unless he gets written consent from the ACCC in advance.
The undertaking also requires Agrison to 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.
Customers who have been affected by Agrison's misrepresentations should contact Agrison to resolve their complaint.
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