Trading fairly and consumer protection
If you work in the motor vehicle dealing industry, you need to have a clear understanding of what is required to deliver legal and ethical services to your customers.
In Western Australia, people expect to be dealt with fairly.
'Fairness' means that motor vehicle dealers and sales staff will respect their customers - after all they are the source of your livelihood. Fairness also means operating with openness, honesty and integrity and not taking advantage of people. Therefore, you need to understand your legal obligations and the rights of your customers.
The Motor Vehicle Dealers Act and the Fair Trading Act 1987 reflect community expectations and reinforce legally the requirement for motor industry staff to treat all customers in a transaction fairly by acting professionally and with a high degree of accountability and skill. These Acts also protect consumers from unfair trading practices.
Key consumer protection requirements under the Motor Vehicle Dealers Act particular to motor industry staff include:
- statutory warranties for secondhand vehicles;
- standard contract conditions; and
- consignment agreements and trust accounts.
Key consumer protection requirements under the Fair Trading Act particular to motor industry staff include:
- a requirement that all vehicles be of 'merchantable quality' at the time of sale (we interpret this to mean that the vehicle is fundamentally safe and can be used in the normal manner);
- a requirement to disclose information properly and not engage in misleading or deceptive conduct when advertising or talking about your vehicles.
We can provide you with some useful publications to assist you to trade fairly. These include: