Banned Timaru trader fined $10,000 for selling 40 cars illegally

A Timaru man who illegally sold 40 cars on Facebook Marketplace has been fined $10,000.

Kenneth James Michael Cumming was already banned from trading following a prosecution for ignoring a five-year ban imposed in 2021 for illegally selling 38 vehicles.

In the Timaru District Court on Thursday, Cumming pleaded guilty to three fresh charges under the Motor Vehicle Sales Act 2003 (MVSA) for participating in motor vehicle trading while banned

Despite his 2021 ban, Cumming sold 19 vehicles in 2022, eight in 2023, and 13 in 2024 – more than six times the legal annual limit for unregistered traders.

Kenneth Cumming was fined $10,000 in the Timaru District Court on Thursday. Photo / George Heard

The Ministry of Business Innovation and Employment’s (MBIE) investigation was triggered by an anonymous complaint from a member of the public reporting large-scale sales on Facebook Marketplace, with New Zealand Transport Agency Waka Kotahi (NZTA) data confirming the extent of the offending.

Cumming ignored a compliance letter sent by MBIE in March 2025.

He was then prosecuted and pleaded guilty to the charges, and on 9 October 2025 the court imposed a $10,000 fine.

While the court acknowledged that a higher penalty would ordinarily be warranted given the seriousness of Cumming’s repeat offending, the final amount was ordered in consideration of his personal circumstances.

Investigations Manager, Occupational Regulation at MBIE Jyoti Issar said a concerning increase in unregistered trading, particularly online, which puts consumers at risk and damages the reputation of legitimate traders had been observed.

“The MVSA has certain provisions to safeguard the public when they purchase a motor vehicle, and offers consumers greater protection when they purchase a car from a registered motor trader,” they said.

“Unregistered traders undermine consumer trust and the integrity of the motor vehicle industry. When you buy from an unregistered motor vehicle trader you are not able to settle any issues via the Motor Vehicle Disputes Tribunal.”

“This case sends a clear message that repeat offending will not be tolerated, and significant penalties will apply to those who ignore the law.”

Under section 95 of the MVSA it is an offence to sell more than six vehicles in a 12-month period, and those 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 ensure 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 requirements protect consumers and ensure transparency in the motor vehicle markets

Ben Tomsett is a multimedia journalist based in Dunedin. He joined the Herald in 2023.