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CRITICAL issues – including better consumer education on EVs and ensuring consumer law obligations are met by new brands entering Australia – now face the automotive industry and need increased regulatory attention, according to a submission to the government by Victoria’s key automotive body.

The Victorian Automotive Chamber of Commerce (VACC) said in its response to the Australian Competition and Consumer Commission (ACCC) 2024 Strategic Review that there is “a need for balanced regulation that considers the rights and responsibilities of dealers, manufacturers, and consumers alike.”

VACC CEO Geoff Gwilym said that “as the automotive industry undergoes significant transformation, it’s crucial that the ACCC focuses on these key issues to ensure fair competition and protect both consumers and businesses in our sector.”

Geoff Gwilym

The VACC listed six points in its submission. They are:


1. Electric Vehicle (EV) education: VACC emphasises the need for better consumer education regarding EVs, particularly concerning servicing requirements and associated costs. It urges the ACCC to play a crucial role in managing consumer expectations and countering misinformation about EV maintenance.


2. Warranty and recall processes: The VACC highlights ongoing issues with car-makers rejecting or delaying warranty reimbursements to dealers. The submission calls for stricter enforcement of fair compensation for warranty, product defect, and recall reimbursements. 


3. Motor vehicle service and repair information scheme: The VACC acknowledges progress but identifies several areas requiring immediate ACCC attention, including enforcing the ‘fair and reasonable’ standard for data access and ensuring compliance of third-party data aggregators with safety requirements.


4, Environmental claims and sustainability: VACC stresses the importance of ACCC oversight in mitigating unrealistic consumer expectations about EVs and protecting automotive businesses from potential vexatious claims.


5. Unfair contract terms: The submission highlights concerns about unilateral changes to operations manuals in franchising agreements, which can significantly impact dealership profitability.


6. New market entrants: With the anticipated influx of new EV manufacturers, particularly from China, VACC calls for proactive ACCC measures to ensure accountability regarding Australian Consumer Law obligations.

In regard to EV education, the VACC said it had “significant concerns” about the limited understanding among consumers about the quality of EVs and their rights under the Australian Consumer Law (ACL). 

“VACC has engaged with the ACCC to facilitate dealership visits aimed at enhancing understanding of the requirements for servicing  and repairing EVs,” it said in its submission.

“We believe that the ACCC can play a crucial role in managing consumer expectations around the quality of EVs, particularly in countering misinformation suggesting that these vehicles require less servicing and repair, as well as  addressing the associated technological challenges of EVs.”

The VACC’s full  ACCC 2024 Strategic Review Submission is here: 2024 VACC ACCC Strategic Review.pdf

Meanwhile, the five dealer candidates in the upcoming election for the executive board of the Victorian Automotive Chamber of Commerce (VACC) are reminding dealer members of the chamber to make sure they vote in this year’s VACC executive board election.The election closes on November 15

The candidates are saying that dealers should alert their business administration departments to look out for the voting papers as they arrive in the mail this week and vote for their dealer candidates as soon as the papers arrive.

The chairman of the Victorian Automobile Dealers Association (VADA), Sid Cetindag, told GoAutoNews Premium that members need to know that VADA is not guaranteed a position on the VACC executive board. There are 10 nominations for nine positions in this year’s ballot.

By Neil Dowling

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