Typical CECI device

DEALERS who fear they might have been caught up in a widespread consumer scandal over the veracity of computerised electronic corrosion inhibitor (CECI) devices have been assured by aftermarket sales specialist MotorOne that agreements to withdraw the devices from the market and pay refunds to certain buyers are not an issue for the nation’s car retailers.

Even though only four of MotorOne’s national network of dealer customers were involved in selling a limited number of the devices, the company has moved quickly to assure dealers it is not a car dealer issue.

This follows a finding by the Consumer Protection Division of the WA Department of Commerce which has concluded that these CECI devices do not work as claimed and should not be sold from 2016.

A similar warning was made by the NSW Fair Trading commissioner Rod Stowe who urged consumers “not to waste their money buying computerised electronic corrosion inhibitors (CECI devices) for motor vehicles”.

But widespread media reports regarding the findings created the impression that the issue was a serious problem for car dealers on a national scale.

In fact, only four car dealer customers of MotorOne in WA are involved in any makegoods or refunds made on rust devices they sold – said to be fewer than 100 in a fleet deal – and all arrangements are being handled directly with buyers by MotorOne.

The bulk of the issue is falling to High Performance Corporation (HPC) which sold large numbers of the CECI devices though its 19 Tint-a-Car outlets in WA over many years and through Tint-a-Car franchises in NSW and Queensland.

MotorOne says the CECI devices have never been part of the MotorOne aftermarket product portfolio sold through its network of motor dealer clients.

HPC and MotorOne are each owned, or mostly owned, by the South African-based WorldMark group. Both companies sourced their CECI units from the same supplier although the specifications were slightly different. Tint-a-Car is also owned by WorldMark.

The effectiveness of the CECI electronic rust devices came to the attention of the WA consumer regulator when HPC, between 2011 and 2013, made claims on its website that “laboratory tests demonstrate a reduction in the corrosion process by as much as 80 per cent, effectively doubling your vehicle’s lifespan against rust and corrosion”.

MotorOne managing director Greg Lewis told GoAutoNews Premium that electronic rust protection works by putting negative electrons through the metal surface of a car body.

Mr Lewis said that “metal tries to revert back to its natural state which is iron ore and this current is designed to prevent it from doing that”.

“That is the science behind it. The product will help, there is no doubt about that, it is the extent of the claims for its effectiveness (that has been called into question),” he said.

The WA commissioner asked the companies to justify the claims. Both HPC and MotorOne agreed with the commissioner that the marketing department had overstated the benefits of the product and removed the claims from the website.

The two-year purchasing window in which consumers qualify for a full refund relates to the time that those claims were being made.

The commission then decided to seek its own expert advice which said the CECI devices tested did not prevent rust or corrosion.

Acting commissioner for consumer protection in WA, Gary Newcombe, said: “In fact the ‘science’ behind the claimed protection simply cannot work in this scenario.

“For unwanted rust to be attracted to a sacrificial piece of metal using positive electrical current requires the negatively connected rusty metal to be in a conductive solution, so essentially the vehicle would need to be constantly submerged in water.”

Mr Lewis said that “all the tests that have been done by independent laboratories around these products state that it does work”.

“But we have decided not to get into that argument with the department,” he said. “It was very clear that the commissioner had formed a very strong negative view that these products did not work, or do not do what they are stated to do, and that there was no efficacy to the products.

“MotorOne has a reputation and the reputation of our dealer customers to protect. Clearly this (electronic rust protection) is going to be a continuing issue and we do not want to be in this kind of product for those reasons. So we have agreed that we will not be selling any of this kind of unit moving forward,” he said.

Mr Lewis said there was no prosecution and that HPC and MotorOne voluntarily entered into the undertakings to make refunds where applicable and cease selling the CECI devices which will happen from the end of this month.

“We were not given any orders and no orders were made against us,” he said.

By Neil Dowling and John Mellor