HONDA Australia has paid a penalty of $18,780 after the Australian Competition and Consumer Commission (ACCC) issued it with an infringement notice for an alleged breach of the information sharing requirements of the Motor Vehicle Service and Repair Information Sharing Scheme (MVIS). 

Honda is the first OEM to be hit with a penalty under the MVIS. Penalties under the MVIS could be as high as $10 million per offence for a corporation.

The ACCC said the payment of a penalty specified in an infringement notice is not an admission of a contravention of the CCA.

The ACCC can issue an infringement notice when it has reasonable grounds to believe a person or business has contravened certain provisions of the MVIS scheme. The ACCC can also take legal action in the Federal Court for alleged contraventions.The MVIS scheme was introduced as a way of making vehicle servicing more competitive by giving independent repairers access to the same necessary diagnostic software and technical information that dealers use for servicing and repairing modern technologically complex motor vehicles.

Under the scheme, Honda Australia provides repairers with access to its diagnostic software known as the Honda Diagnostic System software suite (i-HDS Software). The i-HDS Software can be used by repairers for a range of functions, including diagnosis and repair of electronic systems and reprogramming electronic control units in Honda vehicles.

The ACCC said the rules generally require vehicle manufacturers to offer the information for sale by day, by month or by year; or for any period nominated by an independent repairer.

The ACCC alleges that from 1 July 2022 to 6 May 2024, Honda Australia offered to supply the software only by yearly subscription, and did not give independent repairers the option to purchase less expensive subscriptions on a daily or monthly basis.

Acting ACCC Chair Catriona Lowe said in a statement: “We allege that Honda breached the requirements of the MVIS scheme, which is designed to make vehicle servicing and repair more competitive by giving independent repairers access to the same technical information, including software, that dealerships have.

Catriona Lowe

“Providing repairers with flexibility and choice in how they access information under the MVIS scheme is fundamental to increasing competition and consumer choice. Making the information available on a daily, monthly and annual basis allows independent repairers to select the access period that is most appropriate for them. This in turn enables them to be in a position to offer more competitive prices to consumers.”

This is the first ACCC enforcement action for an alleged contravention of the MVIS scheme, and the ACCC continues to focus on enforcement in this area.

“We are continuing to conduct compliance checks and we will take appropriate enforcement action for non-compliance which is detected,” Ms Lowe said.

“In appropriate circumstances, this may include commencing proceedings in the Federal Court, where contraventions of certain MVIS Scheme provisions may attract a penalty of up to $10 million per contravention,” she said.

The ACCC said it has updated its industry guidance about the MVIS scheme and this will be released in the coming months.

Matt Hobbs

Meanwhile the Motor Trades Association of Australia (MTAA) has applauded the ACCC action.

MTAA CEO Matt Hobbs said in a statement: “This enforcement action demonstrates that while the scheme is relatively new, the ACCC is watching and willing to take action to make sure the scheme is successful and that there is an even playing field for independent repairers across Australia, no matter the brand of car.

“Whilst we are pleased to see the scheme functioning effectively, there is still room for improvement,” Mr Hobbs said. “As the scheme is still relatively new it is critical that repairers let AASRA and ACCC know of any issues that they have in gaining access to information needed to fix Australian cars.

“The Australian car market is continuing to evolve – new technologies including driver assistance as well as great numbers of hybrids and EVs are going on sale and the MVIS will need to evolve with it.”

The MTAA has forecast that more than 160 additional EVs will go on sale by 2030 and more than a dozen new brands will enter the market.

The MTAA emphasises the importance of all manufacturers adhering to the provisions of the Act to maintain a level playing field among data providers. This ensures that independent repairers can compete fairly in the automotive service and repair market.

Looking ahead, the MTAA said it would continue to advocate for improved access to repair information to include repairs of heavy vehicles, motorcycles, recreational vehicles and farm and agricultural machinery 

Footnote:

The ACCC is responsible for enforcing the MVIS scheme under the Competition and Consumer Act (CCA). It is a mandatory scheme to promote competition in the Australian automotive service and repair sector that requires motor vehicle service and repair information to be made available for purchase by all Australian repairers at a price not exceeding its fair market value.

The scheme was introduced to ensure consumers benefit from competitive aftermarkets and have a choice of outlets to repair and service their cars.

Compliance and enforcement

The scheme adopts recommendations from the ACCC’s 2017 new car retailing industry market study which found that independent repairers were experiencing continued problems accessing information needed to repair and service modern cars.

Most independent repairers in Australia are small businesses, and one of the ACCC’s enforcement and compliance priorities is to ensure that small businesses receive the protections of competition and consumer laws.

While the ACCC has a broad oversight and enforcement role for the MVIS scheme, the Australian Automotive Service and Repair Authority oversees the day-to-day operations of the scheme in the role of ‘Scheme Adviser’.