With two bills of the Department of Road Transport, order is brought to the anarchy that existed with vehicle recalls, the Approval and Supervision Authorities are determined, while for the first time the profession of vehicle dealer is guaranteed.
After the problems that arose with the Takata airbags, the lack of information for drivers and the anarchy in the field of used vehicle trading, the Ministry of Transport and by extension the TOM, proceeded to draft two important bills that "tidy up" both the market and the obligations of the state to supervise dealers and prevent accidents from defective parts. One bill will be referred to as "The Approval and Supervision of the Vehicle Market Law of 2026" and the other, as "The Regulation and Safeguarding of the Profession of Vehicle Dealers Law of 2026".
The first bill now stipulates that 'recall' means any measure aimed at returning a product that has already been made available to the end user, while 'withdrawal' means any measure aimed at preventing the availability on the market of a product in the supply chain. The "Type Approval Authority" which means the Department of Road Transport of the Ministry of Transport and the "Market Surveillance Authority" which means the Department of Electromechanical Services of the Ministry of Transport are determined.
The Type Approval Authority has the power whenever it deems it appropriate and justified to enter the premises of economic operators in the Republic and to inspect a vehicle, technical unit or documents or facilities or equipment or premises related thereto, and further has the power to take all necessary samples of vehicles, systems, components and separate technical units for the purpose of conformity testing. The Authority may designate technical services and laboratories to carry out technical checks and tests specified and required by decrees and regulations, checks to ensure the conformity of the manufacturer's production with the type approval. The persons carrying out the audits in relation to changes and modifications must hold a diploma in Mechanical Engineering, five years of experience and successfully pass the relevant accreditation examinations.
The Market Surveillance Authority shall annually draw up a general overview of the planned market surveillance audits, which it shall submit to the Forum by 1 March at the latest, and shall draw up every two years a report with its findings from each conformity verification audit carried out in the previous two years.
The responsibility lies with the importer
The bill also establishes obligations for economic operators, importers, representatives, manufacturers and distributors. In addition to its obligations under European Regulations, an economic operator (company) or importer must and has the obligation to: (a) immediately inform the competent Authorities of the commencement of the withdrawal or recall procedure regarding vehicles, systems, components, mechanical parts, separate technical units or equipment and accessories from the Republic19, and (b) take all necessary measures, in consultation with the Market Surveillance Authority, including, where applicable, timely informing the owner or the end user of the taking of corrective measures or revocation, in respect of vehicles for which he is responsible but also for which the granting of a national individual vehicle approval is requested in the Republic as well as in respect of vehicles holding an EU type-approval.
It is also provided that for vehicles covered by a European Union type-approval, economic operator means the manufacturer, the manufacturer's authorized representative or, if the manufacturer is not established in the Republic, the distributor established in the Republic. For vehicles imported from third countries without obtaining an EU type-approval or a national individual vehicle approval, an economic operator is the distributor established in the Republic even when it was not responsible for the distribution of the vehicle in question but distributes new vehicles of the same brand or brand name. In case none of the persons designated as an economic operator as above is established in the Republic, then the economic operator is the end user.
In cases of violation of the above provisions, administrative fines ranging from €1000 to €250,000 are provided, depending on the severity of the violation, and in case the violation continues, an additional administrative fine, depending on the severity of the violation, ranging from €100 to €30,000 for each day of continuation of the violation.
In case of vehicle recall, then a procedure is determined for the driver to be informed by the importer with: Sending a registered letter, telephone call and/or SMS text message, relevant posting of no. chassis, model, make and date of manufacture of the vehicle on its website and announcement in the media.
New framework for traders and importers
On the basis of the second bill, a Council is established for the first time under the name "Vehicle Dealer Registration Council" and based in Nicosia, which will have the competence and authority to- (a) carry out the registration of dealers and issue the relevant certificates or licenses in accordance with the provisions of this Law; (b) to keep the Register of Traders and to delete from it registered traders, in compliance with the provisions of this Law; (c) to exercise disciplinary control over registered traders and to impose the disciplinary sanctions established by this Law.
The President of the Council will be appointed by the Council of Ministers, while the directors of the TOM and the Electromechanical Services, a representative of the Consumer Protection Service and a representative of the Attorney General will participate in it. Two members from the register of dealers of new vehicles and two from the register of dealers of used vehicles will also participate. The Council will issue an annual licence to practise as a vehicle dealer, and no person acts as a vehicle dealer, unless he has provided the Council with a valid letter of guarantee, covering the dealer's possible liability to pay compensation to a buyer for breach of his legal obligation to fully inform the buyer,
The most important thing is that a vehicle dealer must inform the intended vehicle buyer in writing and in Greek of all information related to the physical condition of the vehicle and/or the origin and/or registration history, any recall and/or any defect of the product and/or the mileage indicators. Especially for the latter, because many buyers have suffered from it, penalties are also provided.
