ACCC restates support for parallel imports

The head of the Australian Consumer and Competition Commission has offered a robust defence of legislative changes to the Motor Vehicles Standards Act at the Auto Aftermarket Conference in Melbourne today.

Previously the ACCC has made it perfectly clear where it stands on the subject of derestricted (parallel) importation, but now Commissioner Roger Featherston has gone so far as to describe a claim by the Federal Chamber of Automotive Industries as "far fetched".

"Just as the record industry said that allowing parallel importation of music would be the death of the local music industry, some in the automotive industry have voiced concern that reforms to vehicle importation laws will harm Australian consumers and businesses," Featherston said.

"For example, the Federal Chamber of Automotive Industries has asserted that consumers 'may end up with a vehicle that does not meet their needs or operate as required in Australian driving conditions'.

"This would appear to be far-fetched. Consumers will only be able to import cars from the UK and Japan. These are markets that sell right-hand drive cars and have similar safety standards to Australia. Also, the climatic conditions in Europe and Japan can be as extreme, if not more extreme, than conditions in Australia.

"The issue does not appear to be one of safety or adaptability to Australian conditions, but one of choice."

Featherston claimed that parallel importation has been beneficial for New Zealand's economy, resulting in new businesses that "have emerged to assist consumers with the importation process; and existing businesses [that] have grown".

"We would expect to see similar benefits here in Australia," he continued.

"The proposed laws will only have a negative effect on established Australian dealerships if their prices are not competitive, or if consumers cannot purchase the specifications of vehicles they want."

Featherston admitted that how Australian Consumer Law (ACL) would protect consumers under the revised trading parameters remains unclear, with the legislation still a work in progress.

"Until details of the scheme are settled, it is difficult to be precise about how consumer guarantees will apply to protect consumers from defects," he said.

"We acknowledge that it will be important for consumers to have information about the operation of the scheme and the possible risks."

Among the other issues Featherston raised during his speech were the access to OEM parts and servicing data – a matter of some concern to the Australian Automotive Aftermarket Association aftermarket-industry-codifies-data-sharing-50881 – and alleged price fixing by petrol retailers.

In addition, he spoke of Kia's capped price servicing issue, FCA's handling of Jeep warranty claims and Volkswagen's dieselgate scandal. The last remains under investigation locally by the ACCC.