ACM: advertised prices for second-hand cars must be clearer

The Netherlands Authority for Consumers and Markets (ACM) has launched an investigation into the advertised prices of second-hand cars. ACM has found there is often a lot of uncertainty about the prices in the advertisements, and about what consumers exactly get for the displayed price. The basic principle is that consumers should be able to buy their desired cars for the prices listed in the advertisements. It is now often unclear whether the advertised price includes all mandatory costs. In addition, information regarding the warranty is also often incorrect and incomplete. ACM has ordered the sector to adjust their advertisements by the middle of May at the latest.

Bernadette van Buchem, Director of ACM's Consumer Department, comments: "It is important that consumers buying second-hand cars know beforehand for what price they are able to purchase their cars. We wish to prevent consumers, when purchasing their cars, from facing any surprises because of the addition of various unforeseen costs."

How is ACM dealing with the problem?

Most advertisements for second-hand cars are found online on platforms like Autotrack, Autoscout24, or Dutch online auction site Marktplaats. In order to ensure that the advertised prices on these platforms meet regulations, ACM is reminding second-hand car dealers of their responsibilities and of the rules. Sellers have until the middle of May to meet regulations by doing the following:

• Only listing prices that include all unavoidable costs in their advertisements;
• Ensuring that it is clear whether additional cost items are already included in the advertised price or whether these cost items are optional;
• Making sure that no incorrect information regarding the warranty is provided. Buyers always have the statutory warranty when purchasing second-hand cars, meaning that it is not allowed to offer cars "without warranty".

ACM has also reached out to data providers. Many car dealers use online systems provided by data providers to manage their inventories, and to create their online advertisements. ACM sent explanations of the regulations to car dealers through these data providers, and also asked providers to remind car dealers of the regulations through their systems. After mid-May, ACM will start checking whether advertisements meet regulations. If this is not the case, ACM can decide to impose fines.

Clear prices

ACM wants to make sure that consumers deal with clear prices and conditions. To that end, ACM has already taken actions in the travel sector and with regard to new cars. In this way, consumers are better able to compare prices, and will have a stronger position later on in the purchasing process. This is beneficial for companies that wish to compete fairly, and for consumers who want to know the exact prices of their purchases.