Turkiye introduces a “verified listings” regulation for automotive sales, allowing only licensed dealers to post ads, aimed at curbing fraud and price manipulation.
Turkiye’s Automotive Market Enters a New Era with Verified Listings
Turkiye’s automotive market is undergoing a significant transformation with the introduction of a new “verified listings” regulation. Announced by Trade Minister Ömer Bolat, this regulation aims to protect consumers from fraudulent advertisements and price manipulations that have plagued the sector for years.
Effective immediately, only licensed dealers with an official authorization certificate can post automotive ads. This move follows a similar regulation in the housing sector and is designed to bring transparency and fairness to Turkiye’s automotive market.
Key Aspects of the Verified Listings Regulation
The new regulation is set to reshape the automotive market in several ways:
- Restriction to Licensed Dealers:
Only authorized dealers can post ads for second-hand motor vehicles. This eliminates the possibility of fraudulent listings from unlicensed sellers. - Verification Process:
The Electronic Information Distribution System (EIDS) will be used to verify the ownership of the vehicle before an ad is published. This ensures that only the rightful owners or their immediate family members can list vehicles for sale. - Severe Penalties for Violations:
Businesses operating without the required license have already faced fines totaling approximately 23 million Turkish lira. The new regulation further empowers authorities to impose hefty penalties on violators.
Why This Regulation Matters
The introduction of the verified listings system is a proactive step by the Turkish government to address several ongoing issues in the automotive market:
- Consumer Protection:
By verifying the ownership and restricting ad posting to licensed dealers, the government aims to prevent consumers from falling victim to fraudulent ads. - Curbing Price Manipulation:
The regulation is also intended to prevent speculative price increases by ensuring that all listings are genuine and reflect the real market value of vehicles. - Market Stability:
The Ministry of Trade anticipates that this regulation will contribute to stabilizing the automotive market, making it more transparent and competitive.
Impact of Previous Measures
Minister Bolat highlighted the success of previous regulations aimed at controlling the automotive market. Notable among these is the “6 months, 6,000 kilometers” rule, which limits the resale of new cars within a specified period to prevent price gouging. This measure has led to approximately 52 million Turkish lira in fines.
Additionally, restrictions have been placed on selling second-hand vehicles at prices higher than the manufacturer’s suggested retail price. Violations of this rule have resulted in fines amounting to 90 million Turkish lira to date.
Future Outlook
The Turkish Ministry of Trade is committed to closely monitoring the automotive market and implementing additional measures as needed. The focus remains on ensuring a fair, competitive, and stable market that benefits both consumers and legitimate businesses.
- Continuous Monitoring and Enforcement:
Ongoing inspections and stringent enforcement of the new regulations are expected to reduce market distortions and improve consumer confidence. - Potential for Further Regulation:
Minister Bolat has indicated that if necessary, additional regulations will be introduced to further stabilize the market and protect consumers.
The verified listings regulation marks a significant step forward for Turkiye’s automotive sector. As the market adjusts to this new era of transparency and accountability, consumers can look forward to a safer, more reliable car-buying experience.
Source: Trthaber / Prepared by Irem Yildiz