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AAAA wants better buyer protection

Posted on 24 July, 2016

The Australian Automotive Aftermarket Association (AAAA) is calling for an overhaul of consumer law protections, with a focus on protecting vehicle owners’ consumer rights in its Australian Consumer Law Review. Executive director Stuart Charity says an overhaul is needed as there is a significant power imbalance between consumers and the large global vehicle manufacturers and their dealer networks. “The AAAA observes that Australian Consumer Law, while successfully delivering improvements in consumer protection, does not currently adequately protect consumer rights in respect to car purchase and ownership. “There are sections of Australian consumer law that are subject to 'creative compliance' rather than actual compliance with the letter and the spirit of the law,” says Charity. He adds that many owners are not aware of the terms and conditions in their contract or the warranty period. “Current laws allow warranty terms that are highly confusing to most consumers. This confusion leads to many people buying services that they do not need, because they do not know that they already have significant protection under Australian consumer law. “For example, it is not clear if some 'extended warranties' are insurance products or service contracts. These contracts use the term 'warranty', but do not necessarily provide the protections that a consumer would expect from a 'warranty'. “AAAA supports mandatory requirements for contracts that clearly state what rights are being surrendered and which rights simply duplicate statutory consumer rights. In particular, we support a cooling off period for 'extended warranties', similar to the UK model." Charity says the AAAA is also concerned that there is no rigorous consumer protection to ensure owners know about recalls and technical services in a timely manner. He says that while manufacturers are required to advise owners in the event of a recall, they have no obligation to maintain contact if the owner changes address or to advise the new owner when a vehicle is sold. He adds that technical bulletins include information on vehicle faults that aren’t deemed to warrant a full safety recall, but that this information is not shared with owners or independent repairers working outside authorised dealership networks. Another issue highlighted in its review is the lack of a clear definition for what is considered a “major failure” for vehicles. Charity says: “We need what is commonly referred to as a ‘Lemon Law’.” “The absence of an Australian Lemon Law leads to significant consumer disadvantage. Under current regulations, car owners are forced to return to the point of sale repeatedly for ‘repairs’ and often do not achieve a satisfactory outcome over an unreasonably long period.” The review also advocates that car manufacturers should provide owners with access to data on the service and repair of their vehicles and control over the data gathered from their vehicles.