Car fairs, auctions may be affected by law revamp

The Government plans to widen protection for car buyers - including at auctions, car fairs and by unlicensed dealers - in a revamp of the laws governing car dealers.

It is also proposing to scrap existing statutory industry bodies such as the Motor Vehicle Dealers Institute and broaden the powers and responsibilities of the Motor Vehicle Disputes Tribunal.

Consumer protections would come under generic consumer laws such as the Fair Trading Act and the industry would be required to take the necessary steps to protect consumers against losses with fidelity funds.

The plans were outlined in a discussion document yesterday.

A bill introduced in 1998 to amend the 1975 Motor Vehicle Dealers Act has been stalled for some time after being criticised by the industry and consumer groups.

Commerce Minister Paul Swain and Consumer Affairs Minister Phillida Bunkle said that it was time the 25-year-old law was replaced.

The discussion document would result in recommendations to the cabinet in June.

The ministers said that, unlike the present law, the new one would focus on all motor vehicle sales other than private sales and simplify the requirements for consumer protection.

The Motor Vehicle Dealers Institute said yesterday it was happy with the plans, despite the planned changes stripping it of its statutory powers.

- NZPA