Holden has commited to a new, court enforceable, programme that requires the company to comply with its consumer guarantee obligations under the Australian Consumer Law (ACL).
The decision comes as a result of an earlier investigation, conducted by the ACCC, regarding manufacturing faults.
Holden accepted that its conduct likely contravened consumer law by not allowing consumers refunds due to manufacturing faults because of reasons such as; not being serviced by Holden dealers or on a regular enough basis.
Holden has committed to, among other things:
- Clarify its internal compliance training program so that multiple minor failures of a vehicle may constitute a major failure.
- For new vehicles, Holden has also committed to offering consumers a refund or replacement without the need for them to demonstrate a major failure, if a defect prevents a vehicle from being driveable within 60 days of the date of purchase.
- Engage an external reviewer to consider complaints since 1 January 2016, and provide a remedy to consumers where appropriate.
- Amend its dealer policies and procedures to ensure they comply with the ACL in relation to consumer guarantees, and.
- Provide consumers with the ability to obtain information about any issues with their vehicle by contacting Holden and giving their vehicle identification number.
ACCC Chairman Rod Sims said that Holden had acknowledged its faults in the situation and made responded in a more than sufficient manner.
“Holden acknowledged that it misrepresented to some consumers that it had discretion to decide whether the vehicle owner would be offered a refund, repair or replacement for a car with a manufacturing fault, and that any remedy was a goodwill gesture.
“Holden also accepted that some consumers were told that a remedy would not be provided because the vehicle had not been serviced by a Holden dealer or with sufficient regularity, or as the vehicle was purchased second hand.
“The ACL includes consumer guarantees that provide remedies for major and minor faults in motor vehicles. The consumer guarantees operate separately to the manufacturer’s warranty, and cannot be modified to require consumers to have their vehicles serviced by authorised dealers in order to obtain a remedy.
“Holden has offered an undertaking that goes beyond ensuring compliance with the current consumer guarantee obligations and commits to measures in line with recommended changes to the law. These are great commitments that will have a significant and positive impact for consumers."