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19/07/2010 - CHOICE OF REPAIRER STEPS UP A GEAR
Launched by the Australian Automotive Aftermarket Association in April last year the Choice of Repairer Campaign has moved into its next phase.
The aim of the campaign is to protect choice and competition in vehicle repair, servicing and replacement parts sectors by eliminating any technical or legal barriers that impact on the Australian consumers' rights to have their vehicle serviced, maintained and repaired at competitive prices in the workshop of their choice.
Much of the campaign activity to date has been focused on raising awareness of the issue with key industry and consumer groups in Australia, documenting the consumer's experience of unfair practices and creating the web site and campaign materials (www.choiceofrepairer.com.au).
The campaign continues to monitor and work with similar "Right to Repair" campaigns in Europe and North America and examining the potential for a cooperative industry led solution to the issue. The AAAA was also an active contributor to the recent Commonwealth Consumer Affairs Advisory Council (CCAAC) review of statutory and implied conditions and warranties.
This review has resulted in the development of a new Australian Consumer Law, which has now passed both houses of Parliament and will come into force on January 1, 2011.
AAAA believes the new Law will provide for the implementation of a national, unified approach to consumer dealings.
The new unfair terms and consumer guarantee provisions enable a safer environment for consumers, ensuring them better protection from exploitation. Nevertheless, the absence of explicit legislation protecting consumers from the danger of express warranties remains.
The issue of fair market competition in vehicle servicing extends beyond the misrepresentation of warranties. There are also technical barriers to independent parts and servicing that may prevent consumers from selecting their repairer. Whilst we welcome the CCAAC findings and the new Australian Consumer Law we note that it does not affect the vehicle repair consumer in a manner that provides for open competition in our industry.
Specifically the new Consumer Law does not address the technical and anti-competitive barriers that limit the ability of independent aftermarket businesses to access the necessary information, tools and equipment required to maintain and repair customers' vehicles to the manufacturers' specifications.
In Europe, there are regulations governing the distribution of technical and diagnostic information related to the servicing of motor vehicles, and protecting the consumers' rights to have their vehicle repaired or serviced in the workshop of their choice. This regulation has recently been renewed and strengthened by the European Parliament. In North America, the aftermarket industry is campaigning to prevent manufacturers from unfairly restricting access to information and tools.
This has resulted in Right to Repair Acts being legislated in two US States. A Motor Vehicle Owners' Right to Repair Act was also introduced into the US Federal Senate in March 2010 and has already received significant bipartisan support.
In Australia, there remains no regulated process to ensure that vehicle manufacturers make available vital repair and service information and equipment to independent aftermarket businesses.
This means independent aftermarket parts suppliers and workshops in Australia must rely on the goodwill of vehicle manufacturers.
This is a growing problem for consumers. It is estimated that over a 10-year period, a vehicle will require service and repairs approximately equal to one and a half times the original purchase price.
Each year we estimate that vehicle owners spend over $8 billion on parts and services. Consumers are paying too much because this is not a fair and open playing field.
Based on our analysis of the situation in Australia and the insights and experience of international colleagues, the Choice of Repairer sub-committee has come to the view that the introduction of a Choice of Repairer Act in Australia is the only solution.
The USA has already worked its way through the introduction of a voluntary industry code and it is now working on legislative solutions. Voluntary codes don't work where there is unequal market power - the small independently owned repairer cannot match the power of global vehicle companies.
As a result AAAA has now written to The Hon Dr Craig Emerson MP, Minster for Competition Policy and Consumer Affairs seeking a meeting where it will formally request that the Government intervene to protect free and open competition in the industry. A similar meeting request has been sent to Peter Kell, Deputy Commissioner responsible for Competition at the ACCC.
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