NSW Fair Trading manages a range of consumer protection legislation which requires individuals within a particular industry to be licensed. The agency provides licenses and certificates to a variety of industry members. This includes conveyancers, motor vehicle repairers, pawnbrokers, second-hand dealers, motor dealers, builders and electricians. Subsequently, if you are involved in the operation of a licensed business and NSW Fair Trading believes you have breached the law you may face disciplinary action. The first step in this disciplinary action would be a notice to show cause.
What does a notice to show cause include?
- Description of the alleged breach of law
- Spells out the specific grounds for the disciplinary action
- How you can respond to the notice
- If there is an opportunity to make verbal submissions and how to arrange an appointment
The show cause process is designed to give the entity the opportunity to avoid disciplinary action from NSW Fair Trading.
How to respond?
If you have received a notice to show cause it is advisable to either contact an industry association or a business lawyer. A license holder typically has 14 days to respond to a notice to show cause. However, the notice will set out the exact time period.
Subsequently, if you fail to respond within the provided timeline, you may face disciplinary action. This can be as serious as removal of your license without the agency giving you the opportunity to make a submission.
If you later wish to have NSW Fair Trading’s decision reviewed you can ask for an internal review. If you are subsequently still unsatisfied then you can lodge an application with the NSW Civil and Administrative Tribunal.
Type of disciplinary action
If you fail to provide appropriate reasons as to why NSW Fair Trading should not take action against you then you may be subject to a variety of disciplinary actions. Consequently, if the breach of law is minor the disciplinary action may be a formal caution or reprimand. More substantive responses include a monetary penalty or condition on your licence. The most serious penalties however include cancelling your licence or disqualifying an entity from holding or obtaining a licence in the future.
Conclusion
Therefore, a notice to show cause is the initial step in a disciplinary action. NSW Fair Trading brings this action against an entity within a licensed industry. The consequences of this action can be severe. Consequently, it’s important to follow the steps above and seek competent legal advice.
