Offences and penalties under the MVSA
Infringement notices, serious offences, enforcement of the MVSA, the Motor Vehicle Disputes Tribunal.
Infringement offences
Under the MVSA there are a number of infringement offences which carry a fine of up to $2,000. These are:
- failure by a car market operator to take reasonable steps to ensure a seller has attached a Consumer Information Notice to the vehicle being sold
- entering false information into a record of sale
- otherwise failing to comply with requirements to keep records of contracts for sale
- being unable to show your Certificate of Registration without a good reason
- not giving notice to the Registrar of any changes in your registration details
- preventing an inspection by the Registrar, or giving false or misleading information
- preventing the carrying out of a search warrant.
If the Registrar considers you have committed an infringement offence, the Registrar may either:
a) issue you with a notice requiring you to pay a fine of $500, or
b) seek a court hearing against you.
If (a) applies, you may pay the $500, but if you wish to contest liability you may request a court hearing. If you request a court hearing and lose the case, you may be required to pay up to $2,000.
Serious offences
These offences carry a fine of up to $50,000 for an individual and up to $200,000 for a company, and other penalties may also be added. These offences are:
- trading without being registered
- carrying on trading while being banned
- failing to comply with a ban
- tampering with an odometer
- making a false statutory declaration or supplying false or misleading information to the Registrar.
Enforcement of the MVSA
The National Enforcement Unit (NEU), part of the Ministry of Economic Development, enforces the MVSA. The NEU will identify, and where appropriate, take action against individuals or companies, including importers, who have not registered and are trading illegally, or who are otherwise violating sections 95-119 of the MVSA, including odometer tampering. The NEU can receive written complaints against traders via their Motor Vehicle Sales Act 2003 Complaint Form. The NEU does not ban traders, only a Court can do that.
For more information visit NEU website.
Find out more about applications to ban traders.
The Consumer Information Notice under the Fair Trading Act is enforced by the Commerce Commission.
Motor Vehicle Disputes Tribunal
The Motor Vehicle Disputes Tribunal (MVDT) can hear claims under the Consumer Guarantees Act, the Fair Trading Act, the Contractual Remedies Act and the Sale of Goods Act. The MVDT is administered by the Ministry of Justice.
