Tyre dumping alert and dealer banned - Motor vehicle industry bulletin 4

This publication is for: 
Motor industry

11 September 2020

Tread carefully with tyre disposal

The WA motor vehicle industry can play a vital role in stopping a scam involving illegally dumped tyres, which is causing an environmental hazard and big clean-up bills.

Businesses are reminded that they have a legal responsibility to ensure that any contractor who transports their used tyres is licensed to do so.

Consumer Protection is sharing the Department of Water and Environmental Regulation’s (DWER) alert about the scam, which has targeted tyre retailers and vehicle wrecking yards with offers to cheaply dispose of worn-out tyres. The offender collects the tyres and then dumps them at a property they have rented before abandoning the property.

The property owner is left with the problem and cost of disposing of the used tyres, which are considered an environmental pollution risk and are subject to controlled waste regulations. One landlord in Wungong is facing a $100,000 disposal bill after the tenant dumped hundreds of worn-out tyres at the property.

Businesses disposing of used tyres must ensure that anyone engaged to transport them is legitimate and licensed to carry out this work. This can be confirmed with DWER by calling 6364 7000 or emailing controlled.waste@dwer.wa.gov.au. Allowing used tyres to be transported by unauthorised operators is an offence under the Environmental Protection (Controlled Waste) Regulations 2004 and can attract a penalty of up to $25,000.

More information is available in DWER’s fact sheet on transporting used tyres.

Dealer banned after deceiving owners 

A motor vehicle dealer who sold on consignment has been disqualified from holding a licence for eight years after being convicted of deceiving owners about the sale price and failing to comply with laws relating to consignment sales. The ban starts on 19 November 2020.

The State Administrative Tribunal (SAT) endorsed the Commissioner for Consumer Protection’s view that Mr Zeljko Grujin is not a fit and proper person to hold a licence due to his criminal convictions. Mr Grujin was formerly the dealership manager of PAG (WA) Pty Ltd trading as Xoticar in Como and currently conducts business as a sole trader operating as Xoticar Auction House in Welshpool. Mr Grujin will be banned from working in the industry for eight years while PAG (WA) Pty Ltd was given an indefinite ban, having to apply to the SAT should it wish to operate again in the future.

Commissioner for Consumer Protection Lanie Chopping said Mr Grujin betrayed the trust of owners who, in good faith, had handed over their vehicles for sale.

“Mr Grujin, both as an employee of PAG and the principal operator of Xoticar Auction House, engaged in gross deception in order to maximise the profit on each of these consignment sales and also thumbed his nose at the laws that are designed to protect consumers in these vulnerable circumstances,” Ms Chopping said.

“The laws surrounding consignment sales in relation to the disclosure of the true sale price and the handling of the proceeds are in place to ensure that it is a transparent process.

"Mr Grujin, PAG (WA) Pty Ltd and Xoticar Auction House engaged in these deceptive practices not only once, but did it on many occasions knowing full well that they were breaking the law. Then, to make matters worse, they defied the ban (previously imposed) on consignment sales by continuing their illegal behaviour.

"We hope that this SAT order is the final chapter in the Xoticar saga and Zeljko Grujin is no longer a threat to consumers in the future."

Need some assistance?

For automotive inquiries, please contact automotive@dmirs.wa.gov.au
For licensing inquiries, please contact cplicensing@dmir

Consumer Protection
Last updated 11 Sep 2020

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