Businesses and individuals buying or selling secondhand goods will be subject to new laws from 1 April this year, when the Secondhand Dealers and Pawnbrokers Act 2004 comes into effect.
Inspector Scott Spackman, Office of the Commissioner, says the new legislation will make it harder for criminals to dispose of stolen goods and easier for police to recover stolen goods and solve property crimes.
"This is good news for retailers, customers and the Police but an unwelcome development for those who seek to profiteer from stolen goods.
"We welcome the legislation as another tool in our crime reduction strategies.
"The Act brings the legislation into the 21st Century and reflects changes in policing and crime prevention initiatives since the legislation was last enacted 42 years ago in 1963."
The requirement to have to show photo identification will provide a deterrent to dishonest practices while police are able to inspect, on demand, all secondhand dealers records and goods held for sale.
As well as the risk for criminals, licensed traders will be required to keep more accurate records while unlicensed traders face a fine of up to $20,000.
The most significant Secondhand Dealers and Pawnbrokers Act 2004 legislative changes include:
• All staff and business owners involved in purchasing certain specified secondhand goods need to be licensed or hold a certificate issued by the Secondhand Dealers & Pawnbrokers Licensing Authority (part of the Tribunals Unit of the Special Jurisdictions Group of the Ministry of Justice).
• Dealers will need to keep comprehensive records of all specified goods purchased.
• Penalties will be increased from the current maximum fine of $200 to $20,000 for unlicensed dealing and $10,000 for failing to record prescribed information in dealer’s records.
• Dealers are required to sight approved photo ID, unless they have personal knowledge of the seller, and record personal details and signatures of all people selling specified goods.
• Internet auctioneers and promoters of markets and fairs will be required to keep records of who is selling goods through their events or auction site.
• The existing outdated schedule of goods that list what goods must be held for a period of time prior to sale will be replaced with a more up-to-date general list of goods that must be retained for 14 days.
Inspector Spackman says Police have worked closely and cooperatively with the Ministry of Justice, industry representatives such as the Licensed Traders Association and industry practitioners such as Cash Converters to help inform and enforce the requirements of the new Act.