Victoria will introduce tougher laws to crack down on unlicensed used car dealers and odometer tampering, after new research found widespread deception in the state’s second-hand vehicle market.
The Allan Labor Government says the reforms will strengthen consumer protections as increasing numbers of Victorians buy used cars online, where unlicensed traders have been exploiting buyers through fraudulent practices.
According to a new Consumer Affairs Victoria report, almost one in three sampled used vehicles advertised online had odometers wound back by at least 25,000 kilometres, potentially inflating sale prices and misleading buyers.
The government also found some unlicensed traders were purchasing multiple vehicles at auctions before reselling them at a profit through online marketplaces and social media without complying with licensing requirements.
Under the proposed reforms, Consumer Affairs Victoria will receive expanded powers to investigate, fine and prosecute traders involved in odometer tampering. Licensed traders will also be required to verify a vehicle’s odometer reading before completing a sale.
The changes will establish a single point of contact for consumers who have been defrauded, strengthen oversight of auction houses and improve protections for buyers who suffer financial losses.
Consumer Affairs Victoria will accompany the reforms with a statewide public awareness campaign and a targeted compliance operation aimed at identifying and prosecuting unlicensed traders.
Minister for Consumer Affairs Paul Edbrooke said consumers deserved confidence when purchasing a used vehicle.
“When you buy a used car, you should get what you pay for – not get taken for a ride,” Mr Edbrooke said.
He added that as more Victorians purchase vehicles online, the government was determined to ensure “dodgy operators have nowhere to hide.”
The announcement also included political criticism of the Opposition, with the government claiming proposed public sector cuts by the Liberal Party would weaken Consumer Affairs Victoria’s ability to protect motorists.
The new measures build on other initiatives aimed at reducing motorists’ costs, including the government’s 20 per cent registration discount, the Fair Fuel Plan and the Servo Saver app.
The proposed reforms are expected to be introduced to Parliament as part of the government’s broader consumer protection agenda.
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