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Carsales Staff1 Jun 2015
NEWS

Aftermarket industry backs Muir's law

Australian Motoring Enthusiast Party Senator gains support from AAAA for his 'lemon law'

The Australian Automotive Aftermarket Association (AAAA) is rallying behind the Consumer Action Law Centre, the Public Defender and Senator Ricky Muir (pictured at left, with fellow senator Nick Xenophon) for a new 'lemon law' initiative.

In a press release issued last week, Stuart Charity, the AAAA's Executive Director, let fly at government inaction on the matter of 'lemons' – cars that repeatedly break down and leave owners inconvenienced and out of pocket.

"AAAA has long advocated that the clarity and strength of consumer protection written into vehicle warranties must be improved," Charity was quoted saying in the press release.

"In particular, the AAAA has pressed successive Federal Governments for more robust policing of warranty performance by vehicle manufacturers and their dealers.

"We now welcome the drive for a law that defines a lemon as a vehicle that has been repaired three times by the manufacturer or importer, yet still has a defect, or if the vehicle is out of service for 20 or more days in total due to defects.

"The AAAA also supports the view that the Australian Competition and Consumer Commission [ACCC] probe into car manufacturer behaviour in meeting their consumer guarantee obligations, We believe the onus of proof should be reversed, so the burden of proof falls on the manufacturer or dealer to prove that the vehicle is of acceptable quality and fit for purpose.

"Our position is that if a vehicle has a major failure or repeated failures, the consumer should have the right to choose between a refund or a replacement.

"Such policies would eliminate cases where vehicles are repeatedly presented for repairs yet are never really reliable and fit for purpose. Vehicle makers would be encouraged not to rush new models to market without appropriate testing ... there have been concerning signs of this in recent years.

"Australian car manufacturing will end in about two years, making our nation totally reliant on imports. Australian consumers should not be used as test markets by international manufacturers.

"We encourage the ACCC to act quickly to make consumer protection more robust."

This latest call will not endear the AAAA to the FCAI (the Federal Chamber of Automotive Industries), but the AAAA has not been feeling all cosy and cuddly with the FCAI for some time, given the reluctance of the FCAI and its members to share its parts and servicing data with the AAAA and its respective members.

It was, according to the press release, the AAAA that informed the ACCC that capped price servicing by car companies – the FCAI's members, in the main – was not the boon for consumers that the car companies had suggested. Kia was one company that came unstuck after the ACCC investigated the importer.

"We will continue to pursue policies promoting open competition and protecting consumer rights from policies and behaviours implemented by global players that may prejudice Australian consumers' rights. We see the drive for a 'lemon law' to be consistent with our policies," Charity concluded.

Picture courtesy of Facebook/Senator Ricky Muir

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Written byCarsales Staff
Our team of independent expert car reviewers and journalists
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