The company has been caught selling cars to unsuspecting customers by pretending to be a car dealer, The Daily Mail reports.
Gumtree has been criticised for misleading consumers about the services offered by the company and has faced numerous complaints from customers who were misled by Gumtree’s “dealership experience” offering.
GumTree’s sales agents in Australia, New Zealand, the UK and Canada have all faced a raft of complaints over the service’s alleged misleading advertising.
According to the Daily Mail, Gumtree recently began a “new” website which includes a new ad, titled “Why do you think I sold you a car?”
The advert, which was filmed in Melbourne, states that Gumtree agents have the ability to “sell you a brand new car for a fixed price”.
Gumtree states that it has “100% confidence” that the ads were genuine.
However, the Advertising Standards Authority has recently expressed concerns about the company’s practices.
In November, the organisation urged Gumtree to remove ads which claimed the “dealer experience” service was “100%” successful, and instead focus on providing accurate customer service.
The adverts have also been criticised by members of the public, including users who have purchased cars from Gumtree and then been tricked into believing that GumTree has sold them a car.
The advertising is being removed after the Advertisers’ Code of Practice was issued by the ACCC.
Gumline is the second car dealership to be investigated by the Australian Competition and Consumer Commission (ACCC) following reports that it was selling car parts to buyers.
The Australian Competition Commission has since launched a crackdown on the online car dealership.