The ACCC is reacting to complaints alleging that car retailers have not provided information on the future recall status of a vehicle or have sold a vehicle under “active recall” – the most at-risk airbags of all.

The VACC regards the issue so seriously that it has told dealers that if they are unsure of Takata regulations it will conduct a seminar at dealerships at no cost to VACC members.

An estimated 3.8 million vehicles were affected by the Takata airbag recall of which the dealership network has handled about 2.8 million.

The ACCC is now dealing with a number of consumer complaints about the retail sale of vehicles by dealers with affected Takata airbags, where the dealer may not have notified a buyer about the recall status of the vehicle.

The VACC says that the ACCC is writing to those dealers to remind them of their obligations and asking dealers to provide the ACCC with the following:

• A copy of the dealership policy and procedures in relation to checking a Takata airbag recall status of a vehicle prior to sale
• Advice as to whether the franchisor provided clear instruction and communication to the dealership/s regarding the recall notice and to provide copies of those communications to the ACCC
• Documents pertaining to the (alleged) transgressed deal
• Details of any other consumer complaints regarding Takata airbag recall
• Indication as to whether the dealership has sold any other affected vehicles without first notifying the consumer in accordance with the recall notice.

The VACC said members should not ignore the ACCC request and they should co-operate fully with the regulator.

The chamber said that “punitive penalties” apply to breaches.

Under Australian Consumer Law (ACL), maximum penalties apply per breach of the ACL for the supply of consumer goods that do not comply with safety standards.

The fines can be: up to $10 million; three times the value of the benefit received; or 10 per cent of annual turnover in the preceding 12 months.

Employees are also at risk. Individuals found responsible for the breach of ACL could be looking at a $500,000 penalty.

By John Mellor