ACCC to keep car industry on notice ‘indefinitely’, targets denied warranty claims

EXCLUSIVE

Car companies have again been put on notice to familiarise themselves with their warranty obligations under Australian Consumer Law – after the nation’s peak watchdog yesterday issued its 10th automotive industry penalty in six years, the totals for which add up to more than $135 million.

The Australian Competition and Consumer Commission (ACCC) has focused a spotlight on the automotive sector since 2015 following numerous complaints from consumers who had been handed hefty repair bills for work that should have been covered under warranty – including after the nominated warranty period had expired.

Now it has been revealed the ACCC is not about to take its foot off the accelerator pedal.

The authority says it plans to maintain a close watch on the automotive sector because it has become apparent that some major brands are still not doing enough to meet their obligations under Australian Consumer Law – which supersedes a manufacturer’s warranty, despite assurances from car dealers.

In an exclusive interview with Drive, ACCC Chair Rod Sims said there is still work to be done to better protect new-car buyers.

“We’ve long taken an interest in the motor vehicle industry because, for most people, it’s the second most expensive purchase after their home,” said Mr Sims.

“We’ve been very concerned about consumers getting mislead in many ways during our renewed focus on the automotive sector.”

When asked to select some examples of poor behaviour, Mr Sims said: “The biggest fine was to Volkswagen for making false diesel emissions claims. And more recently Mazda’s behaviour was found to be particularly bad form and was found to have misled consumers and required a number of them to pay expensive repair bills for work that should have been covered under warranty.”

While the ACCC has had numerous successful cases against car companies in Federal Court – or had automotive giants agree to court-enforceable undertakings to meet their obligations under Australian Consumer Law – there are still more areas of the industry to explore.

“There is a concern that some sections of the motor industry are not giving the proper attention to consumers and to Australian Consumer Law,” said Mr Sims. “Customers spend a lot of money with car companies; they really should be more helpful when things go bad.”

When asked if there was a deadline for when the ACCC would step down from taking such a keen interest in the automotive sector, Mr Sims said:

“It’s an undefined period. We have no plans to stop monitoring the industry and listening to customer complaints. We will continue to keep our investigations open. The car industry is too important – and the financial risks to consumers are too great – for the sector to not be top of mind.”