Offence for dealer to require trade-in

Press, Volume CXI, Issue 32637, 19 June 1971, Page 16

Offence for dealer to require trade-in

It is an offence for a motor-vehicle dealer to insist that a trade-in be made available as a pre-requisite for the purchase of a new car, a spokesman fot the secretary of the Department of Industries and Commerce says in reply to a letter to “The Press.”

In an earlier letter, “Pactio Obtempero” complained that he was refused a new car because he declined a ridiculously lbw offer on a tradein. “CLEAR DUTY” Another correspondent “Sniffrat,” whose letter was referred to the Department of Industries and Commerce, asked: “Has not the department a clear duty to ensure on its own initiative that the import licences which it issues are not abused in this manner? To wait for some luckless member of the general public to file a complaint, duly witnessed through official channels—though widespread abuse is known to exist—reveals a degree of indifference suspiciously close to collusion.” The department replied that such a situation was covered under section 29 (1) of the Control of Prices Act, 1947. Even an offer to sell under those conditions constitutes a breach of the act. However, before the department could prosecute for a breach of the section, it

would be necessary to have clear and substantiated evidence to support any action taken.

Recently, in three such cases, prosecution was taken successfully by the Crown Solicitor at Dunedin, while several other cases were still under investigation by the department. NO ASSURANCE “It is pointed out however, that even if a prosecution is successful, it would not carry any assurance that a new car would be made available. There is nothing in the law which would enable this sort of requirement to be imposed on any dealer," the department said. The department advised “Sniffrat” to get in touch with the District Officer, Department of Industries and Commerce, Christchurch, and supply him with the name and address of the dealer in question and the evidence of refusal to sell a new car without a trade-in. The department would then arrange for one of its officers to investigate the matter.