The Victorian Government will introduce new laws to strengthen action against unlicensed used car traders, following research that found widespread evidence of odometer tampering in vehicles advertised online.
Consumer Affairs Victoria research found that nearly one in three sampled used vehicles advertised online had odometers wound back by at least 25,000 kilometres. The report also identified unlicensed traders buying multiple vehicles at auction before reselling them at a profit through online marketplaces and social media.
Under the proposed reforms, Consumer Affairs Victoria will receive expanded powers to investigate, fine and prosecute odometer tampering. Motor car traders will also be required to check a vehicle’s odometer before selling it.
The package would establish a single point of contact for consumers seeking help after buying from unlicensed traders, tighten rules governing auction houses and strengthen protections for buyers who suffer financial losses.
Consumer Affairs Victoria will also undertake a statewide compliance campaign targeting unlicensed traders, alongside a public education campaign to help motorists identify potential scams.
Victorian law already makes it an offence to tamper with an odometer, with penalties including substantial fines and possible imprisonment. Consumers who buy from unlicensed traders can miss out on protections such as statutory warranties and cooling-off rights that apply when purchasing from licensed dealers.
Consumer Affairs Minister Paul Edbrooke said buyers deserved confidence when purchasing a second-hand vehicle. “When you buy a used car, you should get what you pay for – not get taken for a ride,” he said.
Mr Edbrooke said the growth in online used car sales had created new opportunities for dishonest operators. “More Victorians are shopping for cars online, and we’re making sure the dodgy operators have nowhere to hide,” he said.
The announcement also drew a political contrast with the Opposition, with Mr Edbrooke saying, “Labor is on the side of motorists – Jess Wilson’s Liberals want to gut the very team protecting them.”
The legislation builds on existing consumer protection laws covering licensed motor car traders, with the government arguing the changes will improve enforcement against unlicensed operators as more vehicle sales move online.
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