exploiting loopholes in the law governing used car sales.

The investigation was launched after The Royal Gazette revealed that some gas stations were flouting the law by having cars on display with price stickers attached.

Turning service station forecourts into used car lots breaches strict Government rules on the sale of second-hand vehicles.

Some car dealers are also bending the law on drivers having to sell their current vehicle before buying another.

For they are taking the customer's car as a trade-in, registering it to a member of staff as a private sale then selling it off.

Transport Minister Wayne Furbert said yesterday: "The Transport Control Department is looking into it to see if there are any problems.

"If we find any significant ones, we will see whether we should take action and what action we can take.''