Rising young entrepreneur slugged nearly $50k in court
A DARRA motor dealer and his company have been ordered to pay $47,192 in the court yesterday for making false claims and failing to honour warranty obligations.
Hooman Fartash, principal licensee and sole director of Aria Motors Pty Ltd, was fined $8,000 and ordered to pay court costs of $99, while the business was fined $25,000 and ordered to pay a further $13,993 as compensation to affected consumers, as well as court costs of $99.
Mr Fartash was charged conjointly with his company and pleaded guilty to breaching the Australian Consumer Law and the Motor Dealers and Chattel Auctioneers Act 2014.
A conviction was not recorded.
Last year, Mr Fartash was named #21 in Business News Australia's list of Top 100 Young Entrepreneurs in Australia.
His company, Aria Motors, specialises in "premium quality vehicles at affordable prices".
"Aria Motors takes pride in the cars we showcase, so that you can take pride in the car you drive. That is why at Aria Motors we offer complementary quality services that are exclusive to our business," its website boasts.
"At Aria Motors we value providing customers with the highest standards of customer service."
Yesterday, Richlands Magistrates Court heard three consumers purchased luxury vehicles from Mr Fartash between April and June 2018; however, the buyers soon became aware of various defects with their respective vehicles.
When the consumers contacted Mr Fartash to have repairs completed under Queensland's statutory warranty provisions, Mr Fartash falsely claimed their vehicles were excluded from the warranty.
In sentencing, Magistrate Stuart Shearer said Mr Fartash's conduct gave used car dealers a bad name and that consumer protection laws existed to protect consumers from improper conduct.
He added that it should not take a court, or other legal body, to resolve these matters.
Fair Trading Executive Director Brian Bauer said motor dealers who misled consumers about, and failed to honour, statutory warranty rights would be targeted by the OFT.
"This decision should serve as a reminder to all motor dealers of their obligations to abide by the law, and their duty to act honestly with consumers," he said.
"Consumers who buy used cars from licensed motor dealers should have the confidence that their statutory warranties will be protected, and motor dealers who fail to follow legislation and trade responsibly will be held accountable."