The province's vehicle sales authority is warning consumers about two unlicensed used car dealerships in the Duncan area of Vancouver Island.

The Vehicle Sales Authority of B.C. — an independent, non-profit regulatory agency — says neither Mill Bay Motors nor Twins Speed & Service has a license.

Doug Longhurst with the VSA says it's working to shut down the businesses this week.

While Mill Bay Motors had its licence revoked, Longhurst said Twin Speeds & Service never got a licence in the first place.

"Unfortunately, the business that was never licensed received some advertising in one of the local newspapers over there — you know, sort of a 'Welcome to town, new business!' ... It was unfortunate that we had to say, 'No, no, no — they're not licensed!'"

Longhurst said licensing is important because it allows for consumer protection.

"When you purchase from a licensed dealership that means you have the full protection that the consumer protection laws in B.C. grant you through the Motor Dealer Act. But if you buy from an unlicensed dealership, very few protections apply," he said.

One person is connected to both dealerships and the VSA has called an emergency hearing before the Registrar of Motor Vehicles to review his salesperson licence.

As part of the investigation, anyone who bought a vehicle from either place is asked to notify the VSA.

With files from Tanya Fletcher