As a result of an approach last year by the AAAA to Hon David Bradbury MP, Assistant Treasurer, the Federal Government launched an Inquiry into the sharing of repair information in the automotive industry.

This Inquiry was undertaken by the Commonwealth Consumer Affairs Advisory Council (CCAAC) which is an expert group that provides independent advice to the Minister on competition policy issues.

After nearly 18 months of consultation and deliberation the Assistant Treasurer has just released the final report by the CCAAC on the issue.

To download a copy of this report click here.

The CCAAC’s main recommendations are listed below:

• CCAAC urges the automotive industry to expedite current processes to develop, within a reasonable period of time, an outcome (such as a voluntary industry code of conduct) that ensures there is a process for independent repairers to access repair information. We would expect there to be significant progress towards such an outcome over the next 12 months.
• CCAAC would expect an industry outcome to address the accessibility of repair information to rural and regional repairers as one of the first priority areas, given the greater potential for consumer detriment in such areas. We also encourage industry to reach an early outcome on issues which it may be possible to resolve relatively simply (for example, making overseas websites available to Australian repairers).
• CCAAC also encourages the industry to seek guidance from the Australian Competition and Consumer Commission, consult widely across the industry and involve an independent third-party in leading development of an industry code.
• CCAAC recommends that the Government canvass regulatory options to ensure reasonable access to repair information, if industry is unable to arrive at an effective industry outcome, and access to repair information becomes a barrier to competition in the market for repairs.
• A review of the adequacy of any industry-led outcome should be conducted within 18 months of implementation.
• CCAAC recommends that consumer agencies continue to educate consumers that they are not required to have their vehicle repaired by an ‘authorised’ repairer to ensure continuation of their manufacturer’s warranty.

While our submission advocated strongly for the Government to implement a mandatory industry code of practice to ensure independent aftermarket access to repair information, there are a number of positive outcomes from this development.

First and foremost, the Government is now aware of competition issues in our industry and is watching closely. The car industry has also been put on notice that it must take all necessary steps to make the required information available to the independent aftermarket over the next 12 months. If they don’t, the Government will be forced to regulate. This voluntary agreement will also be reviewed 18 months after it is in place to ensure that it is having the desired effect. In addition the Government has acknowledged the lack of consumer awareness around the servicing of vehicles under warranty and has asked consumer agencies to educate consumers on this issue.

AAAA will be heavily involved in the negotiations that take place around the structure and content of this voluntary industry code and will advocate strongly on behalf of the independent aftermarket to ensure that the agreement provides effective and timely access to all the information and tools needed to effectively repair and maintain today's technically advanced vehicles.

We will keep you updated periodically on key developments as they unfold.