Six motor vehicle traders have been fined more than $9,000, in total, for failing to display Supplier Information Notice (SIN) cards with used motor vehicles for sale. The traders, who were selling from car yards in Hamilton, Rotorua and Auckland, were fined up to $300 for each car that did not carry a card. Another Rotorua car trader - Growth Investments Ltd - has pleaded guilty and will appear in the Rotorua District Court in April 2007 for sentencing.

The traders breached s28 of the Fair Trading Act by failing to attach SIN cards to used motor vehicles for sale. The failure to display the SIN cards was uncovered by Commission investigators during inspection visits to car-yards between November 2005 and January 2006.

Deborah Battell, Commerce Commission Director of Fair Trading said, "Buying a car is usually the second biggest purchase people will make in their lifetime. Buyers are entitled to accurate information about what they are buying. The information on a SIN card provides prospective buyers with a sound basis on which to compare other cars for sale."

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.

"Without the SIN card information, buyers might not only be misled about the car they are buying, but believe they have no rights to get problems put right after sale", said Ms Battell.

Ms Battell warns that the Commerce Commission will not hesitate to take action when motor vehicle traders fail to display the SIN cards.

"The requirement for traders to display the SIN card came into effect in December 2003. Three years is more than enough time for motor vehicle traders to understand their responsibilities to display SINs and comply with these regulations."

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 requirement to display the Supplier Information Notice came into effect on 15 December 2003.

The traders fined are:

  • Auto Kingdom Co. Ltd fined $1,000 on 5 October 2006, in Hamilton District Court
  • Paragon Motors Ltd fined $2000 on 10 October 2006, in Auckland District Court
  • Urban Enhancements Ltd, trading as Urban Wholesale, fined $1,200 on 10 October 2006, in Auckland District Court
  • Robmac Holdings Ltd, trading as Car Court Fairy Springs, fined $1,400 on 19 October 2006, in Rotorua District Court
  • J's Cars Ltd fined $3,000 on 30 October 2006, in Hamilton District Court
  • Trademark Autos Ltd fined $800 on 7 November 2006, in Te Awamutu District Court

The Commission has also prosecuted the following car traders over the past two years for failing to display Supplier Information Notices:

  • December 2006: Harpers' For Cars Ltd pleaded guilty to 16 breaches of the Fair Trading Act by failing to supply SIN cards with the cars it sold on TradeMe. The company was fined $6400.
  • September 2006: Lincoln Darren, of Mike Darren Motors, was fined $3,000 in the Timaru District Court for failing to display a Supplier Information Notice on a BMW vehicle. He was also fined $5,000 for misrepresenting the vehicle's history by ticking the "no" box on the Supplier Information Notice when it asked whether the car had been imported as damaged.
  • May 2006: Andrew Holden Banks, a director of AHB Enterprises Limited trading as Banks Autos, was fined over $8,500 in the Christchurch District Court for lying about the age of cars he was selling and failing to provide purchasers with Supplier Information Notice (SIN) cards. He also agreed to pay over $1,400 in reparations to people who had bought cars from him and had to repair faults.
  • September 2005: Ladies Mile Cars Limited and its director, Mr Sam Alsabiry, fined $3,140 in the Auckland District Court for failing to attach SIN cards to used motor vehicles he sold. The trader also had not provided the cards to purchasers. He created false paperwork to try and convince investigators that purchasers had received and signed a copy of the SIN card. He sent his customers SIN cards created after the fact, and backdated forms for them to sign.