The former Honda dealers, Brighton Automotive Holdings, which ran Astoria Honda Brighton in Melbourne’s inner south and Tynan Motors, a former Honda dealer in Sutherland in Sydney’s south, had commenced proceedings in the Supreme Court to restrain Honda Australia from sending electronic messaging the dealers’ service customers telling them that the service businesses had been closed.

The dealers argued that Honda was contacting the dealers’ customers and making claims that they said contravened section 18 of the Australian Consumer Law.

The dealers had alleged that Honda was telling the customers that, if they serviced their cars through Astoria or Tynans, they may void their warranty. They also alleged that Honda Australia was representing to the customers that they could not get their cars serviced at Astoria or Tynans anymore because service businesses of the two dealers were closed when in fact they were operating normally.

Justice Riordan made the injunction orders against Honda Australia after the brand consented to the orders being made against it. The orders provided that the defendant, Honda Australia, be restrained from representing (directly or indirectly) to customers or potential customers of Astoria and Tynans that:

• If they service their Honda motor vehicle with the first or second plaintiffs they would lose the warranty on their vehicles;
• The first or second plaintiffs’ service business has closed, unless the first or second plaintiffs (as applicable) cease to operate a service business;
• In order to keep the customer or potential customer’s vehicle running safely and at its best the customer or potential customer needs to have the vehicle serviced at an authorised Honda Dealer; and
• If the customer or potential customer has his or her vehicle serviced by anyone other than an authorised Honda Dealer, his or her vehicle will not be running safely and at its best.

Justice Riordan’s orders however, provided that nothing in the order would prevent Honda Australia from disclosing or referring to the terms of the New Car Warranty. 

The orders also provided that the terms of the orders would not prevent the defendant from making statements to the effect that each of the plaintiffs has ceased being an authorised Honda dealership and/or authorised Honda service centre.

Original Article: Dealers sue Honda

By John Mellor