Tougher penalties for odometer tampering will be introduced under sweeping new reforms for motor dealers and repairers announced by the NSW Government on Friday.
NSW fair trading minister, Matthew Mason-Cox says odometer readings are one of the major factors consumers look at when buying a used car.
“As part of the changes, the maximum penalty for any dealer or repairer altering a car odometer will be doubled to $22,000,” Mason-Cox says.
In addition, a new public ‘name and shame’ register will also be established to allow consumers to check if a dealer or repairer has a current licence and whether they have had disciplinary action or offences recorded against them.
Consumers will be able to make more informed decisions about who to do business with and the threat of public shaming will give traders stronger incentives to comply with the law.
The new changes form part of a comprehensive package of reforms, due to start on December 1, 2014, with the start of the Motor Dealers and Repairers Act.
“We believe these new laws will not only strengthen consumer protection but also lift standards in the motor vehicle industry,” Mason-Cox adds.
Under the new laws, car dealers will be required to disclose information about a vehicle being offered for sale. This includes information on whether the car has suffered hail or flood damage, if there has been odometer interference and if major modifications have been made to the car that might affect future registration or insurance.
NSW Fair Trading inspectors will have new powers to issue orders to licensed dealers and repairers to fix faults without a consumer having to take legal action.
The limit on claims to the NSW Civil and Administrative Tribunal and the Act’s ‘compensation fund’ has also been increased from $30,000 to $40,000, to give consumers better redress for more expensive used vehicles.
A key change for the industry will be modernising the current licensing regime for the industry. From December 1, the number of licensee types will be cut from 22 to just three – motor dealer, motor vehicle recycler and motor vehicle repairer.
For the first time, businesses will also have the choice of a one-year or a three-year licence. Traders who choose a three-year licence will see cost savings and save time in dealing with government paperwork.
Tradesperson certificates will need to be renewed every three years and a prescribed minimum qualification standard will be set for new tradespeople.
Mason-Cox said the NSW Government was currently considering the outcomes of a recent Parliamentary committee inquiry into the relationship between vehicle repairers and insurers.
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