Bill changes online car sales rule

Websites that sell cars won't have to register as motor vehicle traders now the Motor Vehicle Sales Amendment Bill has been passed by Parliament.

The change means cars sold on sites like TradeMe won't have to carry a consumer information notice - a law that existed until now but wasn't enforced.

"The theory of the current situation was that each of the 175,000 motor vehicle auctions on TradeMe in the past year would have had to include a consumer information notice, and TradeMe provides advice to sellers that they must do this," former commerce minister Lianne Dalziel said during today's third reading debate on the amendment bill.

"The reality was that TradeMe told a select committee the Commerce Commission informed them in 2006 the requirement would be enforced only against motor vehicle traders, and the Ministry of Consumer Affairs recommended in 2007 that the law be changed to remove this requirement on private sellers.

"I guess in the meantime it's only motor vehicle traders that have been displaying the consumer information notice - the amendment simply changes the law to catch up with the reality of what people are doing and everyone thinks seems to make sense."

The bill makes several other minor amendments to the Motor Vehicle Sales Act 2003, including raising the limit on which the Motor Vehicle Disputes Tribunal can hear claims from $50,000 to $100,000.

Consumer Affairs Minister John Boscawen the change would allow better access to the tribunal and future-proof the limit.

Labour supported the bill and it passed its third reading on a unanimous vote.

 

 

 

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