Liquidated used car supermarket, Caralot, had been criticised by Trading Standards officers who had investigated 77 separate complaints into the operation in the past three years.
The business, based in Spondon, near Derby, had been ordered by Derby County Court to not mislead consumers about the quality of its cars, according to a report by the Derby Telegraph.
Derby City Council said the business failed to accept its responsibilities in resolving complaints, publishing misleading statements and omitting vital accurate information about their vehicles.
Aggressive sales practices and digitally-signed finance agreements completed on behalf of customers were also noted by officers.
Caralot confirmed that it had gone into liquidation earlier this month.
The used car retailer had won the best integrated marketing award for retailers at the 2015 Auto Trader Click Awards but all three sites related to the business, which was formed in 2010, now lie empty.
One Caralot director, Nick Donald, told the Derby Telegraph that the firm had "became too big too soon for me".