Consumer Protection has launched a consultation process to determine whether the regulation of the tow truck industry is required.
Commissioner for Consumer Protection, Lanie Chopping said the consultation followed community concerns about the conduct of some tow truck operators and reports of unscrupulous tactics being used to gain business.
“The consultation will consider the conduct of some operators in relation to alleged excessive towing and storage fees and allegations of intimidation, threats and violence,” Ms Chopping said.
“There are some tow truck operators who take advantage of the fact that consumers find themselves in a stressful situation and may be suffering from shock, if not a serious injury.”
She said it was difficult for consumers in this unfortunate situation to make clear decisions about which tow truck operator to use, negotiate towing and storage rates and then decide which repairer they would use.
“We believe there is a need for consideration of these issues, including whether more specific protections for consumers are warranted,” Ms Chopping said.
“The industry is competitive, but ethical operators sometimes find it difficult to compete with those using dubious tactics to ensure they are first to arrive at the scene of an accident and take possession of the vehicle.”
She said there was a widely-held belief that the industry needed to be cleaned up and any criminal elements involved in running tow truck businesses removed.
“An occupational licensing scheme where participants have to pass a ‘fit-and-proper’ test and disclose criminal histories may be the answer, but we would welcome feedback on this proposal,” Ms Chopping said.
“There are costs involved in a licensing system so we need to consider the financial impact on operators, ensuring we maintain the commercial viability of the industry while, at the same time, protecting consumers.”
Readers interested in lodging a submission can receive extra information from the Consumer Protection website at this PS News link.
The consultation process will continue until 22 September.
