Introduction

The Consumer Information Standards (Used Motor Vehicles) Regulations 2003 are made under the Fair Trading Act 1986 and are commonly known as the SIN (Supplier Information Notice) regulations. They say a SIN must be displayed with any used motor vehicle offered for sale by a motor vehicle trader or through the facility of a car market operator. Section 14 of the Motor Vehicle Sales Act 2003 (MVSA) in turn requires that when motor vehicles are physically displayed for sale, the SIN must be attached in a prominent position that makes it clearly visible from outside the vehicle. For vehicles on display or for sale on the internet (where a contract for sale may be entered into online), the SIN (or access to it, for example, through a hypertext link) must be clearly and prominently displayed on the same web page as the offer and the contract for sale, relating to that vehicle.

Certain Details Must Be Provided

The SIN contains detailed information about the particular motor vehicle offered for sale as well as general consumer information about buying a motor vehicle, including such details as the vehicle's age, usage, make and model and whether another person has a security interest in it. The current SIN is reproduced at Appendix One.

Public Policy Objective

The objective of the SIN in providing this information is to assist buyers get the information they need to make an informed decision about the vehicle they are considering buying. That information needs to meet a minimum standard. It must be accurate and easily understood. It must be enforceable. Providing good information is important given buying a motor vehicle is a major financial commitment for consumers. For many, it represents their second largest single purchase (the largest being the purchase of a house) and it will often also involve some sort of credit arrangement.

Acknowledgement of SIN

A buyer needs to acknowledge in writing that they have received a copy of the SIN. The motor vehicle trader is responsible for obtaining this whenever he or she is a party to, or acts as an agent for a party to, a contract for sale. The acknowledgement must be obtained immediately before the sale of the vehicle or - in the case of a car auctioneer - as soon as practicable after the sale.

Keeping Records

The trader must keep a copy of the SIN and its acknowledgement for six years and make these available for inspection on request of the Motor Vehicle Trader Registrar.

Penalties and Offences

Failure to comply with the requirement to provide a SIN, and the information required in the SIN, is a breach of section 28 of the Fair Trading Act 1986 and attracts a maximum fine of $60,000 for individuals and $200,000 for companies. Failure by a car market operator to take reasonable steps to ensure a consumer selling through them attaches a SIN is an offence under the MVSA and attracts a maximum fine of $2,000. This is also an infringement offence.

Review of Supplier Information Notice Requirements

In May 2006, the Ministry of Consumer Affairs published a discussion paper Review of the Consumer Information Standards (Used Motor Vehicles) Regulations 2003 and invited comments on the information currently required on the SIN as well as any views on whether there should be additional information requirements. This discussion paper provided background information on the objectives of the different SIN requirements. The discussion of the SIN information requirements was grouped under the following headings:

• Supplier(Seller) details
• Sale and standard vehicle details
• Information about imported used vehicles
• Other information

There was also discussion of the form in which information is provided under the headings:

• Supplier sale and vehicle details
• Consumer advice
• Other

Taking into account the feedback received in submissions and further analysis, the Ministry of Consumer Affairs has developed specific recommended changes to the SIN. These are now discussed under the same headings as above.