MBIE cracks down on rogue traders to protect car buyers
The Ministry of Business, Innovation and Employment (MBIE) is taking proactive action to protect consumers and maintain confidence in the motor vehicle sales industry.
Recent enforcement includes two prosecutions and a new court-imposed ban on a trader with a long history of fraud. These actions follow a recent District Court ruling which confirmed that advertising vehicles for sale online – known as ‘display for sale’ – counts as a sale under the Motor Vehicle Sales Act 2003. The ruling reinforces that anyone selling more than six vehicles in a year, whether online or in person, must register as a motor vehicle trader. Failing to register or breaching a ban is an offence that can result in fines of up to $50,000 or a court-imposed ban.
“Buyers are at greater risk purchasing from unregistered traders. If issues arise, they cannot seek resolution through the Motor Vehicle Disputes Tribunal unless the seller meets the criteria as a registered trader,” says Registrar of Motor Vehicle Traders Duncan Connor.
Recent enforcement actions include:
- Kahn Ratcliffe fined $29,700 for selling 88 vehicles while unregistered, despite a previous conviction.
- Kenneth Cumming fined $10,000 for selling 40 vehicles while banned.
- Richard Mark Wallace banned from participating in the business of motor vehicle trading for a further period of five years by the District Court (following a previous five-year ban).
“If you break the law, we will act – and we now have stronger legal backing to do so thanks to the recent ‘display for sale’ decision,” Mr Connor says. “Our priority is consumer protection and maintaining trust in the motor vehicle sales industry.”
“These enforcement actions show our commitment to cracking down on unlawful trading. We’re using smarter tools, including NZTA data-sharing, to identify and stop unlawful trading before it harms consumers.”
MBIE encourages buyers to take precautions when purchasing vehicles online — including arranging a pre-purchase inspection to identify any mechanical issues or money owing and checking the Motor Vehicle Traders Register.
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MBIE urges anyone engaged in unregistered motor vehicle trading to stop immediately.