The ACCC has called on automotive manufacturers to step up to meet consumer guarantee obligations under the Australian Consumer Law (ACL) and stop putting the squeeze on dealers.
ACCC chairman Rod Sims told the 2017 Australian Automotive Dealer Association National Dealer Convention in Sydney that manufacturers were putting the squeeze on dealers through dealer agreements, policies, and procedures.
The draft New car retailing industry market study showed an imbalance in the manufacturer-dealer relationship which imposes a significant cost on dealers and ultimately affects consumers.
Sims said the real concern was car manufacturers that were shifting their consumer law obligations onto dealers.
“The ACCC believes that some car manufacturers have policies and procedures about how dealers respond to consumer guarantee or warranty claims which may limit a dealer’s ability to provide a car refund, replacement or repair to a consumer.
“Information provided to the ACCC indicates that there may be stringent requirements being set by some manufacturers to establish a remedy is warranted before approving reimbursement to the dealer.
"There may also be predetermined maximum amounts that dealers are permitted to spend on repairs without further approval by manufacturers."
“Many dealers believe that if they do not comply with these requirements, their franchise or dealer agreement will be put at risk. Consequently, dealers may be reluctant to offer remedies without certainty of being reimbursed, which may reduce consumers’ access to appropriate or timely remedies.”