A critical meeting with Federal Assistant Treasurer David Bradbury has validated the Choice of Repairer campaign launched by the Australian Automotive Aftermarket Association (AAAA) on behalf of the independent aftermarket in 2009 to protect choice and competition in the vehicle repair, service and replacement parts sector.

Held last week in Minister Bradbury's Lindsay electorate in Western Sydney, the meeting was one of many being held across the nation to tell the automotive aftermarket industry story directly to members of Federal Parliament. Hosted by the Kmart Tyre and Auto Penrith, the meeting was convened by the Australian Automotive Aftermarket Association and attracted more than 50 local members of the peak industry body.

AAAA Executive Director Stuart Charity said the local electorate meetings with Federal MPs had been popular with members. "However, this meeting was especially important because David Bradbury is the Minister that launched the Commonwealth Consumer Affairs Advisory Council (CCAAC) Inquiry into the sharing of repair information in the automotive industry following our approach to him in 2010," said Stuart Charity.

"Our members congratulate the Assistant Treasurer for recognising the need for this Inquiry and look forward to his formal response to the CCAAC final report. Members also welcomed the opportunity to present their case directly to Minister Bradbury for equitable and practical access to the vehicle manufacturer controlled technical and diagnostic information required to repair and maintain today's advanced vehicles.

"The aftermarket simply wants the barriers to this information eliminated. We are not asking for access to intellectual property and the industry is prepared to pay a fair price for the data. The European Union has had a framework in place since 2002 and in 2010 it was renewed and strengthened. Their Block Exemption Regulation is now in place until 2023.

"In the USA, where voluntary data sharing arrangements were put in place 10 years ago, there is now a national move to introduce a more powerful legislative framework following the introduction of the Right to Repair Act in Massachusetts in August 2012.

"The automotive industry is global. The international vehicle makers that recently agreed to the introduction of a Right to Repair Act in Massachusetts are exactly the same companies that, until Minister Bradbury launched this Inquiry, claimed there were no impediments to the access of critical service information in Australia".

Information exchange

At the AAAA meeting in Penrith, Minister Bradbury said his Government was watching developments overseas closely where regulations or agreements are already in place to ensure that Australia is not left behind putting our industry at a competitive disadvantage. 

He noted there was a great deal of inefficiency and duplicated effort when independent repairers have to continually search for information - often on overseas websites. The Assistant Treasurer highlighted the importance of independent repairers having practical access to information required to service and maintain vehicles saying this is particularly important in regional areas, where there may be a limited dealership footprint. The independent aftermarket repair and service sector has a geographic footprint ten times larger than that of the franchise dealerships of the car companies in Australia.

From the CCAAC perspective, he advised the AAAA members present that there was strong consumer interest in maintaining the current level of competition in the sector. He told the meeting that while the vehicle manufacturer’s intellectual property must be protected, IP protection was not a reason to not go ahead with voluntary code of practice to share service information.

Next steps to protect consumer choice and competition

Stuart Charity said the CCAAC final report recognised that limited availability of repair information has the potential to reduce competition within the automotive repair industry, limiting consumer choice. "Assistant Treasurer Bradbury indicated that his formal response to the CCAAC issues paper will be released in the coming weeks," said Stuart Charity.

"The Minister expects that the response will be led by industry with oversight by the Department of Treasury and will include a clear timetable and milestones. He advised the meeting that failure to reach an acceptable agreement in the time frame set down would result in further Government action on this issue.

"Another topic discussed with Assistant Treasurer Bradbury was the inaccurately held belief by many car owners that they are required to have their vehicle repaired by an ‘authorised’ repairer to ensure continuation of their manufacturer’s warranty. “ The Minister indicated that he will raise this issue at the July Consumer Affairs Forum meeting with a view to encouraging all State and Territory consumer agencies to increase their public education and awareness programs to help overcome consumer confusion in this area," said Stuart Charity.