The Federal Government has now released a discussion paper on data sharing in the automotive industry and is calling for interested parties to comment on the paper. The closing date for responses is Friday 23^rd September 2011. A copy of the paper can be downloaded via the link below.

CCAAC Issues Paper

This inquiry is the direct result of an approach by the AAAA to the Hon David Bradbury MP, Parliamentary Secretary Assisting the Treasurer on Competition Policy and Consumer Affairs in which we detailed the potential future impact on consumer choice and competition for Australia’s 12 million car owners if the Government does not intervene to require vehicle manufacturers to share vital repair and service information outside their authorised dealer networks.

The review is being conducted by the Commonwealth Consumer Affairs Advisory Council (CCAAC), an independent expert panel that provides the Government with advice on competition and consumer policy.  The panel will review all submissions received and report back to Parliamentary Secretary Bradbury on any recommended changes to Government policy by the end of this year.

This review gives our industry the opportunity to express our concern with these practices and to advocate for change. The terms of reference for this review focus on consumer detriment caused by the practice of withholding information from independent repairers.  For consumer detriment to be caused, three conditions must be satisfied:

·         access to repair information must be restricted in a material way;

·         the lack of access to such information must have a detrimental effect on independent repairers; and

·         authorised repairers must exploit this situation by charging higher prices than would result in a market with less restricted access to repair information.

We believe that key repair and service information is being intentionally withheld by vehicle manufacturers and that the independent repairer is at a significant disadvantage as a result. In some cases repairers are resorting to time-intensive diagnostic methods, subcontracting to authorised repairers, or even turning customers away.  Where repair information is not available to independent repairers, choice is restricted.  Consumers are forced to use the vehicle manufacturer dealership resulting in reduced competition and higher prices.  We also believe that we are only seeing the “tip of the iceberg” now with rapid advances in vehicle technology likely to magnify the issue in the years ahead.

The AAAA is already well advanced on the preparation of a comprehensive submission to the inquiry representing the interests of our 1400 member companies and the wider independent aftermarket.  Our submission will call on the Federal Government to follow the precedent set in the European Union and intervene to ensure that vehicle manufacturers provide independent aftermarket repairers the vital information (technical manuals, VINs, fault codes, service campaign bulletins, software patches and equipment) needed for the repair and maintenance of vehicles in a non-discriminatory manner, at a fair price, and in a useable form.

To build the strongest possible case for Government action it is important that the CCAAC panel hear from a wide cross section of the industry. Our efforts will be greatly enhanced by individuals and companies putting their views on these issues in writing via a submission to the inquiry.  There is no value in everyone saying exactly the same thing – the CCAAC doesn’t work that way.  They are interested in the current situation and the impact current practices have on today’s consumers.  They would be pleased to receive real-life information on events that have occurred whilst you or your customers have been attempting to repair a vehicle.  Simply recounting one or two examples of what happened when you tried to get the data and how this affected your business, (or your supplier’s business), and primarily how this affected the consumer.

It would be very useful if you could be as specific as you can – what model car, the type of repair, time delays and cost imposts – the exact amount.  It doesn’t matter if your submission is short and to the point – real-life examples are the most valuable contribution at this time.  If you require assistance in lodging a submission please call the AAAA National office on (03) 9545 3333 or email info@aaaa.com.au and we will send you a template to help simply the process and target your response.

This inquiry is our best chance at securing meaningful change that will assist in maintaining a high degree of competition and a level playing field in the automotive retail repair and service sector and preserve the basic right of the car owner to choose who services their vehicle and what parts are used. 

Now is the time to ensure that your voice is heard and we urge you to act before 23^rd September.