Five Star Car Sales Pty Ltd and Bo Li - Court outcome

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3 July 2019
Court actions

A motor car trader and its director have been disqualified from holding a licence for two and a half years, after they agreed that they breached their obligations under Victorian motor car trader laws.

The Victorian Civil and Administrative Tribunal (VCAT) found that Five Star Car Sales Pty Ltd (ACN: 139 632 107) was conducting business in a dishonest and unfair manner.

VCAT also found that the company’s director, Bo Li, 32, of Camberwell, was not a fit and proper person to be a director of a licensee.

Mr Li and Five Star Car Sales agreed that the company:

  • employed someone in a customer service capacity who was disqualified from working in such a role
  • in relation to car advertisements it had placed:
  • did not disclose that it was a motor car trader, and
  • did not include the letters ‘LMCT’ followed by the motor car trader’s licence number 
  • offered cars for sale that did not have the required form attached to them
  • showed Consumer Affairs Victoria inspectors a false and misleading document. 

The breaches occurred between January 2014 to March 2018.

Five Star Car Sales came to our attention during a site inspection and following a consumer complaint.

As well as the disqualification, the company’s licence was also cancelled.