Fighting to hide the car’s accident history: The Ombudsman of the Authority for Consumer Protection and Fair Trade publishes an opinion regarding the failure to disclose in the advertisement of the sale of a car that the vehicle has suffered safety damage or has been determined to be a “loss according to Halacha”.
Every person involved in the sale of a used vehicle must disclose already at the advertising stage if the vehicle is a vehicle that has been determined to be a loss according to Halacha or has suffered safety damage – failure to disclose this constitutes deception according to the Consumer Protection Law
An inspection conducted by the Authority for Consumer Protection and Fair Trade shows that in advertisements for the sale of vehicles to consumers, no disclosure was made about the vehicles being vehicles that were determined to be “loss according to the law” or that they suffered “safety damage”.
The purpose of this statement of opinion is to emphasize the existing obligation to disclose to the consumer, in advertising the vehicle, if the vehicle has suffered safety damage as defined in Regulation 309 of the Traffic Regulations 1961 5771-1961 or it has been determined by an insurance company’s appraiser that it has suffered damage that amounts to a “loss in law” .
The obligation to disclose a material matter concerning the nature of the property and its essence, as well as an express obligation to disclose regarding a defect or inferior quality that significantly reduces the value of the property, apply according to the Consumer Protection Law to any presentation to the consumer concerning the transaction. These obligations apply to the dealer even in the early stages of the transaction – the advertising stage. The existence of safety damage to the vehicle or the fact that the vehicle is a “legal loss” are essential matters in the transaction of purchasing a vehicle. Disclosures at the advertising stage will allow the consumer to stand for the nature of the vehicle and influence his decision whether to come to the business and, if so, to make an informed decision whether to purchase the vehicle, and at what price.
In the Used Vehicle Law (Right to Information and Due Disclosure), 2008, it is stipulated, among other things, that a vehicle dealer shall not enter into a transaction regarding the sale of a used vehicle, unless he has signed a written contract with the purchaser of the vehicle and likewise, the vehicle dealer has notified the purchaser of the vehicle, by the time The signing of the contract and, separately from it, a disclosure form detailing certain essential details such as “injuries caused to the vehicle” as far as is known to the vehicle dealer, and this until the date of delivery of the disclosure form. It goes without saying that the disclosure of the vehicle’s past as a “loss according to law” or a vehicle that has suffered “damage safety”, are “injuries caused by the vehicle”.
But, while the Used Car Law requires proper disclosure within the aforementioned disclosure form, the Used Car Law does not refer to disclosure at other stages of the transaction, including the advertising stage, even before the consumer arrives at the dealer’s lot.
Attorney Ariel Diamant, the legal advisor of the Authority for Consumer Protection and Fair Trade clarified that “buying a car is a transaction with a high financial value, and in light of this it is important for the Authority to prevent deception that could cause the consumer extensive financial damage, in light of this I chose to come out with the disclosure that emphasizes the importance of disclosure to the accident condition of the vehicle, still in the publishing phase. This will allow the consumer to stand by the nature of the vehicle and influence his decision whether to come to the business and if so – to make an informed decision whether to purchase the vehicle, and at what price. I emphasize that the violation of the prohibition of deception and the duty of disclosure in the Consumer Protection Law are grounds for the imposition of a financial sanction and are also criminal offenses.
The opinion of the legal advisor of the Authority reads: “I would like to emphasize herewith that every person involved in the sale of a used vehicle must disclose already at the publication stage whether the vehicle is a vehicle for which it is determined that it is a loss according to the Halacha or that it has suffered safety damage. Failure to disclose this constitutes deception by way of omission contrary to the instructions Section 2 of the Consumer Protection Law, as well as non-disclosure contrary to the provisions of Section 4 of the Consumer Protection Law.
“Violation of the prohibition of deception and the duty of disclosure in the Consumer Protection Law are grounds for the imposition of a financial sanction and are also criminal offenses.
“It should be clarified that this statement of opinion refers to the publication stage and is intended to emphasize the disclosure obligation that already exists, and it does not detract from the disclosure obligations that apply to all stages of the transaction under the Consumer Protection Law, such as in the dealer’s lot, including that the vehicle has suffered safety damage or is a loss according to the law and is not in this directive Because of a policy change or an honest disagreement.”