ACCC backs consumers

Two of Australia’s leading automotive industry bodies have come out swinging following the publication of the long-awaited Australian Competition and Consumer Commission (ACCC) report into new-vehicle retailing industry after an 18-month investigation.

As the Australian industry faces its new reality as an import-only market, the ACCC has outlined three key actions to strengthen Australian Consumer Law around the auto industry.

These are that car manufacturers should update their complaint handling systems and improve their approach to warranty claims; introduce a mandatory scheme for car manufacturers to share technical information with independent repairers; and to give drivers more accurate information about their vehicle’s fuel consumption and emissions.

On publishing the report, ACCC Chairman Rod Simms said: “The ACCC recommends several reforms to improve the new car retailing industry, which should lead to better outcomes for consumers. Some will require industry led change and others, we consider, require regulation.”

The Australian Automotive Aftermarket Association, which represents independent parts manufacturers and repairers, welcomed the ACCC’s findings. Executive Director Stuart Charity said: “To say that we are delighted with this outcome would be a major understatement.

“The car industry leveraged their financial, lobbying and marketing power to criticise the skill and credentials of our industry, telling government that all vehicle repair and service information was being made available but independent repairers didn’t have the skills to use it.

“The ACCC has refuted those claims and the evidence supports our seven-year Choice of Repairer campaign.”

He went on to urge swift action in order to benefit Australian consumers, saying: “The government has the independent umpire’s verdict which contains clear evidence of anti-competitive behaviour.

“They now need to act quickly to protect consumer choice and competition in the automotive repair and service industry. There is no reason for any delay as this recommendation has been a long time coming.”

But while the report was heralded by the independent parts and repair industry, a statement from the body which represents the country’s vehicle importers, the Federal Chamber of Automotive Industries (FCAI), bluntly claimed the ACCC report “maligns the car industry”.

“The reality is that as modern motor vehicles become more sophisticated, the independent repair sector needs to continue to adapt and change to ensure it remains relevant and up to date,” said FCAI Chief Executive Tony Weber.

“Independent repairers shouldn’t be able to say they can repair all makes and models when clearly they can’t. Unfortunately, today’s report just smacks of the ACCC looking to support old and failing business models for independent repairers.”

The FCAI, which is behind the ‘Genuine is Best’ campaign that the AAAA has accused of confusing consumers by associating non-genuine parts with counterfeit parts, also criticised the ACCC’s execution of its investigation.

“While the FCAI and motor vehicle companies in Australia are still studying the detail of today’s report, at first blush it appears that the ACCC has taken 18 months to research and understand a complex industry, and failed to properly comprehend it,” said Weber.

The ACCC has compiled a consumer factsheet outlining its key recommendations for vehicle owners. It also highlights recent action taken against car companies found to have contravened Australian Consumer Law including findings against Holden, Ford  >>>>>> and Audi.

The consumer watchdog says it will now work to implement the study’s actions and recommendations, including taking enforcement action where it sees potential breaches of the Australian Consumer Law.