Issue Date:  -  Monday, 19 July 2004

Another unlicensed dealer prosecuted

Unlicensed Motor Vehicle Dealer Fined $8,000

Consumers have one less unlicensed motor vehicle dealer to be concerned about, thanks to the Government’s beefed up commitment to stamp out back-yard operators.

Christopher Peter Dawson (34) of Parmelia was fined $8,000 in the Perth Court of Petty Sessions for unlicensed motor vehicle dealing last Friday.

The Court heard that between September 2002 and March 2004, Mr Dawson bought or sold 42 vehicles and submitted a number of prescribed forms to the Department for Planning & Infrastructure to record the transfer of licensing details between owners of vehicles.

"Backyard dealing puts consumers at risk and can potentially damage the reputation of licensed dealers who are doing the right thing", Consumer Protection Commissioner Patrick Walker said.

In summary Mr Dawson:

* on 9 occasions used his wife's name and address on the forms as the purchaser of vehicles;

* on 1 occasion Mr. Dawson included his mother's name and address on the form as the purchaser of a vehicle; and

* on 7 other occasions he was not required to submit any forms as they were not licensed vehicles at the time.

"The Court found that this was an obvious attempt to avoid detection for buying and selling multiple vehicles without the proper licence to do so", the Commissioner said.

Of the 23 vehicles bought or sold, and registered in his or his wife's name, 4 of these vehicles were sold to a licensed dealer. On 3 other occasions he acted as an agent for the same licensed dealer, whereby Mr Dawson sourced and negotiated the purchase of 3 more vehicles.

"On 8 occasions Mr Dawson acted as an agent for other people by advertising the sale of their vehicles and 45 advertisements were published in newspapers on his behalf", Mr Walker said.

In hearing the matter, Magistrate Malone noted that the increase in penalties was in fact an attempt by Parliament to deter people, such as Mr Dawson, from dealing in second-hand motor vehicles without being the holder of a valid motor vehicle dealer’s license. By doing so, Mr Dawson undermined the processes that are in place to safeguard the industry and consumers.

"Licensed dealers are bound by statutory and implied warranties under the Motor Vehicle Dealers Act and the provisions of the Fair Trading Act. Licensed dealers also have obligations about safety and giving clear title ownership to vehicles sold", Commissioner Walker said.

The $8,000 fine and $250 in costs sends a clear message that unlicensed dealing will not be tolerated, and the Department will seek to apply the full effects of the increased penalties relating to unlicensed dealing in those matters that proceed to prosecution.

From 1st September 2002 the maximum penalty is $50,000 plus a daily penalty of $1,000. Consumer Protection has investigations continuing into several other unlicensed dealers and will continue to prosecute those operating outside of the law.