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ACCC must focus on data sharing and consumer EV expectations; VACC

Protecting consumer data in the collision industry and a better buyer understanding of the limitations of EVs are some of the points Victoria’s peak automotive body wants the ACCC to focus on.

The Victorian Automotive Chamber of Commerce (VACC) has submitted its response to the ACCC’s 2024 Strategic Review, calling for increased regulatory attention on key issues within the automotive industry.

It also wants a stronger focus from the ACCC on how consumer rights are affected by information sharing in the automotive sector and a stronger scrutiny of new OEMs following the NVES .

“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,” VACC CEO Geoff Gwilym says.

VACC’s submission highlights several critical areas including concern that the New Vehicle Emissions Standards in 2025 will likely bring new foreign OEMs to the Australian market, including at least ten Chinese car manufacturers.

“Therefore, it is essential for the ACCC to proactively address the ongoing lack of accountability among car manufacturers regarding their ACL obligations,” it notes in the submission.

EV Education

The VACC is also stressing the need for better consumer education and expectation on EV servicing requirements and costs and the alternative powertrains come with their own complexity and time delays for repair.

“As the transition to EVs accelerates, the ACCC must focus on ensuring that consumers are well-informed about the inherent limitations of EVs, such as range constraints, faster tire degradation, and technological complexities. These factors are critical for consumers to understand when purchasing an EV.”

Data Protection

But the VACC has also highlighted the broad issue of information including those encountered by repairers with diagnostics and the protection of privacy data in vehicles under the MVS scheme.

“It is vital that all data providers, including OEMs and third-party entities, make diagnostic, software, and programming data and files fully accessible to independent automotive businesses. This will ensure a level playing field and allow for the continued safe and effective repair of vehicles across Australia,” the submission said.

“VACC is concerned that OEMs are collecting and storing the private details of Australian businesses on centralised databases located outside of Australia. This may be inconsistent with legal provisions outlined in the MVIS, particularly as mentioned in the Explanatory Memorandum (1.159). Immediate action is required to ensure the protection of privacy data, and compliance with the MVIS’s requirements.”

It also wants the ACCC to oversee compliance of third-party data aggregators.

“In the collision industry, third-party data aggregators must be held to the same safety standards as outlined in Section 7 of the MVIS Rules. VACC urges the ACCC to take steps to ensure all third-party providers strictly follow these safety requirements.

Other areas of focus

Other areas the submission highlights include;

  1. Warranty and Recall Processes: VACC called attention to issues with car manufacturers delaying or rejecting warranty reimbursements to dealers. They recommended stricter enforcement to ensure fair compensation for warranty claims, product defects, and recalls.
  2. Motor Vehicle Service and Repair Information Scheme: While progress has been made, the VACC urged the ACCC to address compliance with the “fair and reasonable” standard for data access and ensure third-party data aggregators meet safety requirements.
  3. Environmental Claims and Sustainability: VACC called for ACCC oversight to mitigate unrealistic consumer expectations around EVs and protect businesses from vexatious environmental claims.
  4. Unfair Contract Terms: Concerns are raised about unilateral changes to franchising operations manuals, which can significantly impact dealership profitability.
  5. New Market Entrants: With the influx of new EV manufacturers, particularly from China, VACC recommended proactive measures to ensure accountability regarding Australian Consumer Law obligations.

VACC also stresses the importance of balanced regulation, considering the rights and responsibilities of dealers, manufacturers, and consumers.

Read the full  ACCC 2024 Strategic Review Submission here: 2024 VACC ACCC Strategic Review.pdf

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