Stronger Penalties for Dodgy Car Dealers Start July 1st
South Australia is cracking down on unethical second-hand vehicle sellers with new, tougher penalties coming into effect on 1 July. These significant changes aim to protect consumers and will see South Australia implementing the strongest penalties in the nation for these offenses.
The Motor Trade Association of South Australia/Northern Territory (MTA SA/NT) has actively advocated for these changes. Our direct discussions with Minister Andrea Michaels, including her attendance at a Licensed Vehicle Dealers Division meeting, were instrumental in achieving these important reforms.
Unlicensed Dealing: A Serious Offence Just Got More Serious
The new penalties for unlicensed dealing are substantial:
- First or second offence fines have increased from $100,000 to $150,000.
- For third or subsequent offences, potential jail time will double from one year to two years in prison.
- The fine for third and subsequent offences will rise from $100,000 to $250,000 for an individual and an imposing $500,000 for a body corporate.
Odometer Tampering: Protecting Buyers from Deception
New penalties and measures are also in place to combat odometer tampering, a deceptive practice that misleads consumers about a vehicle’s true condition and value:
- The maximum penalty for a first or second offence will see a 15-fold increase to $150,000, with the potential for up to two years imprisonment for a third or subsequent offence.
- A new offence has been introduced for providing false and misleading statements related to odometers, alongside new powers to demand the rectification of altered odometers.
- Courts will now be able to order compensation for consumers impacted by a private seller convicted of odometer tampering.
Increased Enforcement Activity
Consumer and Business Services (CBS) has announced they will be ramping up their compliance and enforcement activities. They’ll be targeting online platforms like Facebook Marketplace and Gumtree, as well as keeping a close eye on licensed vehicle dealers generally.
These enhanced penalties and enforcement efforts underscore a clear message: South Australia is committed to fostering a fair and trustworthy used vehicle market. The MTA SA/NT commends the government for taking these decisive steps to protect consumers and uphold the integrity of our industry.
