MBIE’s proactive approach to compliance
The Ministry of Business Innovation and Employment (MBIE) is using a proactive, education‑led approach to identify potential unregistered motor vehicle traders and support compliance with the Motor Vehicle Sales Act 2003.
A key part of this proactive approach is a data‑matching process developed with the New Zealand Transport Agency (NZTA). Under a memorandum of understanding, NZTA provides monthly vehicle sales data covering approximately the previous 12 months. This data helps the investigations team to identify sales activity that may indicate a person is required to be registered as a motor vehicle trader.
Each month, investigators review the data and identify a number of individuals whose sales activity may exceed what the Act allows. These cases are allocated to investigators and assessed using a consistent process.
MBIE is taking an education-first approach with the data-match initiative. Investigators contact individuals and provide information about their obligations under the Act. This includes the requirement to be registered if they sell more than 6 vehicles in any 12‑month period.
Individuals are also given an opportunity to explain their circumstances or clarify their activity.
In many cases, this early engagement resolves the issue. Most individuals choose to register once they understand the requirements, while others provide information that explains why registration may not be required. Where appropriate, investigators issue education letters to reinforce obligations and support future compliance.
Where individuals do not respond, provide no explanation, or continue selling vehicles without registering, matters may be escalated. Since the data‑matching initiative began, several cases have progressed to early enforcement action, with a few now moving towards formal prosecution pathways.
This proactive approach supports early engagement, helps prevent consumer harm, and promotes a fair marketplace for compliant traders. It also reinforces a key compliance message. People may sell vehicles privately, but anyone selling more than 6 vehicles in a 12‑month period must be registered as a motor vehicle trader.
The investigations team continues to refine this approach in partnership with NZTA and internal teams, with a focus on early education, proportionate responses, and effective compliance outcomes.