Discussion Paper Summary

August 2001

Consumer Information Standard - Used Motor Vehicle Information Display

Who should have to provide a Vehicle Information Display?
Comparison between the existing and proposed requirement

The Government intends to introduce a Consumer Information Standard under the Fair Trading Act 1986 that will require suppliers of motor vehicles to provide buyers with certain information to assist them with purchasing decisions.

The Fair Trading Act prohibits false and misleading representations about goods or services and deals with the provision of information by suppliers to consumers. A Consumer Information Standard is a regulation made under the Act requiring the suppliers of goods and services to disclose specific information about the goods and services in a specific form. The purpose is to ensure that consumers are supplied with good information to assist them in making informed purchasing decisions.

People who offer motor vehicles for supply (except some private sellers) will be required to provide information in the form of a ‘Vehicle Information Display’. This replaces the former ‘window card’. The suggested change of name reflects the fact that suppliers of vehicles over the Internet should also have to supply this information – and in this instance, the information will not be attached to the window. The term Vehicle Information Display is therefore more accurate than the term window card.

This document discusses what information should be on the Vehicle Information Display, and the form and manner in which it should be provided.

Who should have to provide a Vehicle Information Display?

The Government recently agreed to introduce a Motor Vehicle Sales Bill into Parliament. The Bill covers motor vehicles supplied by existing motor vehicle dealers, auctioneers, car fair operators, wholesalers, importers, car rental agencies, and finance companies that sell motor vehicles to the public. Any person who supplies more than six, or imports more than three, motor vehicles a year is presumed to be in the business of trading and is covered by the Bill. Specifically, they must register as motor vehicle traders and are subject to the Motor Vehicle Disputes Tribunal, as well as other legislative requirements.

A greater range of suppliers will be required to provide the Vehicle Information Display when offering motor vehicles for supply. At the moment only licensed motor vehicle dealers are required to display a window card. In future, the following will be required to provide a Vehicle Information Display when offering motor vehicles for supply:

• all suppliers of used motor vehicles required to be registered under the Motor Vehicle Sales Bill
• for private sales:
  • private sellers at car fairs only, and possibly
  • private sellers displaying vehicles for sale from any public location other than the immediate proximity of their usual place of residence (depending on decisions made following responses to this paper).

Comparison between the existing and proposed requirement

Differences from current requirements are detailed in this paper. In summary, the differences are:

• A Consumer Information Standard under the Fair Trading Act 1986 to replace the window card currently required under section 90 of the Motor Vehicle Dealers Act 1975.
• Change the term ‘window card’ to the term ‘Vehicle Information Display’.
• That Vehicle Information Display details be provided by a wider range of suppliers.
• Information to be supplied in the Vehicle Information Display that is not currently required on the window card, including:
  • the supplier's name and registration number, and full address details
  • the distance travelled or the wording, "I (name of supplier) cannot determine the distance this motor vehicle has travelled because the odometer reading may be inaccurate"
  • the date the vehicle was first registered overseas, if it is an import
  • the country from which the vehicle was imported (as opposed to the words "ex-overseas")
  • the date of manufacture
  • the type of fuel the vehicle uses
  • Vehicle Identification Number (VIN)
  • whether the vehicle has been imported as damaged
  • whether the vehicle is subject to an outstanding security interest as recorded on the Personal Property Securities Register.

Discussion Paper - full text

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