Banned trader fined $10,000 for selling 40 cars
Kenneth James Michael Cumming has been sentenced in the Timaru District Court after pleading guilty to 3 charges under the Motor Vehicle Sales Act 2003 (MVSA) for trading motor vehicles when he was banned.
This is the second time Cumming has been prosecuted for unlawful trading. He previously ignored a 5-year ban from 2021 for selling 38 vehicles illegally.
Despite the ban, Mr Cumming sold 19 vehicles in 2022, 8 in 2023, and 13 in 2024. This is more than 6 times the legal annual limit for unregistered traders.
The Ministry of Business Innovation and Employment’s (MBIE) started investigating after an anonymous complaint about large-scale sales on Facebook Marketplace. New Zealand Transport Agency Waka Kotahi (NZTA) data confirmed the scale of the offending.
Mr Cumming ignored a compliance letter sent by MBIE in March 2025. He was then prosecuted and pleaded guilty to the charges. On 9 October 2025 the court fined him $10,000. The court said a higher penalty was justified because of his repeat offending but reduced the amount due to his personal circumstances.
“There has been a concerning increase in unregistered trading, particularly online. This puts consumers at risk and damages the reputation of legitimate traders,” says Jyoti Issar, Investigations Manager, Occupational Regulation, MBIE.
“The MVSA protects people when they buy a motor vehicle. It gives more protection if you buy from a registered trader. Unregistered traders break consumer trust and damage the motor vehicle industry. If you buy from an unregistered trader, you cannot take your case to the Motor Vehicle Disputes Tribunal.
“This case sends a clear message that we will not tolerate repeat offending. Large penalties will also apply to those who ignore the law.”
Under section 95 of the MVSA it is an offence to sell more than 6 vehicles in a 12-month period. People found breaking the law could face fines of up to $50,000 for an individual or $200,000 for a company.
Motor vehicle traders in New Zealand must comply with the MVSA and other consumer laws such as the Fair-Trading Act 1986. These laws set out the rules for motor vehicle trading and make sure that people engage in reasonable and fair trade.
Registered traders must meet strict obligations, including displaying notices on vehicles, keeping sale records, and producing certificates of registration. These rules keep consumers safe and make the motor vehicle market transparent.
MBIE urges anyone trading motor vehicles without being registered to stop immediately. Check the Motor Vehicle Traders Register on our website before you buy a vehicle. This is how you can make sure the trader is registered.