The Transport Department says private cars must hold a hire car permit to carry passengers for hire or reward.
Responding to media enquiries today, the department said it is an offence for any person using a private car to provide hire car services without a permit, even if they join hire car groups using smart phone applications.
Vans cannot be used to carry passengers for hire or reward, it added.
Offenders are liable to a maximum fine of $10,000 and six months' imprisonment.
People should report to Police any vehicles they suspect are being illegally used for carrying passengers for hire or reward.
The department also reminded app developers of the relevant provisions, and requested the developers remind drivers who are using their apps of the relevant regulations.