The Secondhand Dealers and Pawnbrokers Act (2004)

On 1 April 2005, the Secondhand Dealers Act 2004 came into force, updating the previous Secondhand Dealers Act of 1963, and the Pawnbrokers Act of 1908.

The purpose of the Act is to reduce trade in stolen goods and ensure non-Internet traders in particular, keep better records. The Act also specifically recognises the role of Internet Auction Providers and requires Trade Me to keep records of all transactions for up to 12 months.

Only a very small number of Trade Me traders are affected.

So, am I affected?
Probably not. You are not affected if you are buying and/or selling:

• your personal possessions.
• new items.
• items you have made.
• items you have imported.

Additionally, there are a lot of categories - like motor vehicles, books, furniture, property, art, baby gear and most clothing - that the Act does not apply to.

So who is affected and what is involved?
You may be affected if you are trading in secondhand goods, for example if you are buying secondhand items with the express intent of selling them again for profit. The key question to ask yourself is "did I acquire this item for the purpose of trade". Secondhand stores fall clearly into this category.

If you are a secondhand dealer under the Act, you must be licensed.

Licensed secondhand dealers are required to comply with the Act's requirements, including obligations to keep certain records and sight photo identification from anyone they purchase secondhand goods from.

The good news is that you don't need to sight photo identification if buying from Trade Me!

For more information, see the Ministry of Justice help pages.