Penalties - motor car traders

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As a motor car trader, it is your responsibility to understand your legal obligations under the Motor Car Traders Act 1986 and Motor Car Traders Regulations 2008.

You must also understand your responsibilities under other laws that set rules for your business; for example, the Australian Consumer Law and Fair Trading Act 2012, which applies to all Victorian businesses.

You may be penalised for breaches of the Motor Car Traders Act and its regulations. Some offences and their penalties are listed below.

We have a range of options to deal with breaches we identify. For more information, view our Regulatory approach and compliance policy section.

Monetary penalties under the Motor Car Traders Act and its regulations can be imposed by:

  • a court, after it finds charges proven
  • an infringement notice, issued by Consumer Affairs Victoria officers. For more information, view our About infringement notices page.

The value of a penalty unit is $158.57 for financial year 2017-18. This amount will change at the start of each financial year. For more information, visit the Indexation of fees and penalties page on the Department of Treasury and Finance website.

Section of the Motor Car Traders Act or Motor Car Traders Regulation

Obligation

Maximum court-imposed penalty for breaching your obligation

Maximum infringement notice penalty for breaching your obligation

s.14(2)

You must comply with the conditions or restrictions of your licence.

100 penalty units

10 penalty units

s.15(2)

You must produce your licence to the Business Licensing Authority for endorsement.

10 penalty units

1 penalty unit

s.20(1)

You must give notice in writing of certain changes to the Business Licensing Authority within 14 days of the change.

5 penalty units

0.5 penalty units

s.25(2)

You must not refuse or fail to produce your traders’ licence when asked by the police or an inspector.

10 penalty units

1 penalty unit

s.27(3)

You must return your licence to the Business Licensing Authority within 14 days if it has been surrendered.

10 penalty units

1 penalty unit

s.31B(1)

You must return your licence to the Business Licensing Authority within the specified period if it has been suspended or cancelled by the Victorian Civil and Administrative Tribunal.

25 penalty units

2.5 penalty units

s.34

You must display the letters ‘LMCT’ or licensed motor car trader followed by your licence number at each place of business and it must be clearly legible and visible to people entering.

10 penalty units

1 penalty unit

s.35(1)

You must have a dealings book in the prescribed form and keep it on the premises.

50 penalty units

5 penalty units

s.35(2)

You must enter the prescribed matters in the dealings book at the time of purchase, sale or exchange or when receiving a motor car; you must also ensure that entries are signed as prescribed.

50 penalty units

5 penalty units

s.35(3)

You must not make a false or misleading entry in your dealings book.

100 penalty units

N/A

s.35A(1)

You must not employ in a customer service role anyone prohibited under the Motor Car Traders Act 1986.

100 penalty units

N/A

s.35A(3)

You must not employ any person in any customer service capacity unless you have been given a notice in the prescribed form that contains a declaration stating whether or not they are prohibited.

50 penalty units

5 penalty units

s.36(2)

You must not sell a motor car by consignment, or offer to sell one by consignment; or have a motor car in your possession for the purpose of selling it by consignment.

100 penalty units

N/A

s.37(a) and 37(b)

You must not sell or give a motor car to a person under the age of 18; or buy, take in exchange or receive possession of, a motor car from a person under the age of 18.

10 penalty units

N/A

s.38(1)(a) and s.38(1)(b)

You must not tamper or install in substitution the odometer or any other item in a motor car that records the distance it has travelled.

For an individual:

240 penalty units or up to two years' jail, or both


For a company:

1000 penalty units

N/A

s.38(4)

You must not falsely represent the accuracy of an odometer in the course of selling or exchanging a motor car.

For an individual:

100 penalty units


For a company:

500 penalty units

N/A

s.41(2)(a)

You must not sell a used motor car other than by an agreement that contains prescribed particulars.

20 penalty units

2 penalty units

s.41(2)(b)

You must give a purchaser a copy of the agreement for sale of a used car at the time of sale.

20 penalty units

2 penalty units

s.42(2)(a)

You must only sell a new car with an agreement containing prescribed particulars.

20 penalty units

2 penalty units

s.42(2)(b)

You must give a copy of the agreement for sale of a new car at the time of the sale.

20 penalty units

2 penalty units

s.42A(1)

You must not sell a car that is registered under the Road Safety Act 1986 without providing the buyer with a current roadworthy certificate, or a copy of it if you need to send it to the roads corporation (VicRoads).

50 penalty units

5 penalty units

s.43(3)

You must not sell or otherwise dispose of a buyer’s car during the cooling-off period.

50 penalty units

5 penalty units

s.44

You must not enter into an agreement that includes a provision allowing you to terminate the agreement without cause.

20 penalty units

2 penalty units

s.48(1)

You must cancel any security interest on any motor car before you sell, exchange or otherwise dispose of the vehicle.

100 penalty units or 12 months' jail

N/A

s.50J

You must (if you are an auctioneer of a motor car sold at a public auction) keep a record of the name and address of both the seller and purchaser of the motor car.

10 penalty units

1 penalty unit

s.52(1)

You must not offer or display for sale a used motor car (excluding certain classes) unless a notice in the prescribed form containing the required particulars is attached to the vehicle, in the prescribed manner.

10 penalty units

1 penalty unit

s.52(6)

You must ensure that, on the sale of a motor car, the purchaser signs a copy of the Form 5 and must retain the copy in accordance with the regulations.

10 penalty units

1 penalty unit

s.56(2)

You must not enter into an agreement that contains a special condition, which purports to modify your statutory warranty obligations.

10 penalty units

N/A

s.82(A)(1)

You must make documents relating to the business available for inspection by authorised inspectors.

50 penalty units

5 penalty units

s.82A(2)

You must make documents relating to the business available for inspection if you are a former licensee.

50 penalty units

5 penalty units

s.82AT(b)

You must not give false or misleading information or documents to an authorised inspector.

50 penalty units

N/A

s.83A

You must retain any original document or notice of copies that have been sent to the Director of Consumer Affairs Victoria, Business Licensing Authority or the claims committee for six years after the copy was sent.

20 penalty units

2 penalty units

s.83B

You must not destroy, conceal, mutilate or alter any document that you are required to keep by the Motor Car Traders Act 1986 or its regulations.

100 penalty units

N/A

s.88

You must not enter into an agreement containing any terms that exclude, limit or modify the operation of the Motor Car Traders Act 1986.

10 penalty units

N/A

r.18

You must supervise and control each of your employees and other agents, to ensure compliance with the Motor Car Traders Act 1986 and its regulations.

10 penalty units

N/A

r.19(1)

You must include the letters 'LMCT' followed by your licence number in all advertisements.

10 penalty units

1 penalty unit

r.19(2)

You must ensure all advertisements include specific identifiable particulars of a vehicle.

10 penalty units

1 penalty unit

r. 19(7A)

You must ensure that all text included in an advertisement for a motor car is written, printed or typed in a clear and legible manner.

10 penalty units

1 penalty unit

r.21(1)

You must immediately refund or return any money or valuable thing deposited by a purchaser if they test drive a motor car and do not enter into an agreement to purchase it.

10 penalty units

1 penalty unit

r.21(2)

You must immediately refund or return any money or valuable thing deposited by the purchaser if they enter into a conditional agreement to purchase a motor car and subsequently do not continue with the agreement.

10 penalty units


1 penalty unit


r. 24A

You must ensure that all text included in an agreement for the sale of a motor car is printed, typed or written in a clear and legible manner.

10 penalty units


1 penalty unit

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