A motor vehicle trader who sold hundreds of cars via the online auction website, Trade Me, has been convicted and fined for failing to provide mandatory information about the vehicles to purchasers.

Online Vehicle Auctions Limited (OVAL) was sentenced on Tuesday 4 March in the North Shore District Court on 13 counts of breaches of the Fair Trading Act for failure to display or provide Supplier Information Notices (SINs) as required by the Consumer Information Standards (Used Motor Vehicles) Regulations 2003. The breaches resulted in a fine of $300 on each charge plus $130 of court costs on each charge, a total of $5590.

"Purchasing a car is a major financial commitment, and consumers are entitled to accurate information in order to make a better informed purchasing decision. SIN cards provide a standard set of information to consumers", said Paula Rebstock, Commerce Commission Chair.

"Whether a motor vehicle trader offers a car for sale on a car lot, or via the internet, their obligations to provide a SIN card are the same," said Ms Rebstock. "When buying a car over the internet, many purchasers may not be able to inspect the car before committing to the sale, so it is even more vital that SINs are clearly and prominently displayed for vehicles sold by motor vehicle traders online."

"These regulations have been in place since 2003, and are relatively simple to comply with. Motor vehicle traders have had plenty of time to understand their responsibilities to display SINs and comply with these regulations," said Ms Rebstock. "The Commission will continue to take action when motor vehicle traders fail to display the SIN cards," she said.

Background

Consumer Information Standards (Used Motor Vehicles) Regulations 2003 state that a Supplier Information Notice (SIN) must be displayed on used motor vehicles offered or displayed for sale by a registered motor vehicle trader or persons through a car market operator. Private sales are not covered by the regulations.

The regulations require motor vehicle traders offering or displaying used motor vehicles for sale on the internet to prominently display, or provide access to, a SIN relating to that motor vehicle on the same internet web page as the offer or display for sale and the contract for sale in relation to that motor vehicle. The regulations also require the motor vehicle trader to obtain a written acknowledgment from the buyer of the vehicle that he or she has received a copy of the SIN that relates to that vehicle.

The SIN card shows important information about the motor vehicle, such as the car's total cash price, age and odometer reading, together with the trader's registration number. The card also contains information about buyers' legal rights, under the Consumer Guarantees Act, for example.

This is the second Commission prosecution of traders selling used cars without SIN cards on Trade Me. In December 2006 Harpers' For Cars Ltd pleaded guilty to 16 breaches of the Fair Trading Act by failing to supply SINs with the cars it sold on TradeMe.

The requirement to display the SIN came into effect on 15 December 2003.