Key motor industry bodies are backing moves to reform the and protect small businesses when dealing with large businesses including the code of conduct for repairers.
The federal government intends to extend the protections from unfair trade practices to include small businesses following its own law changes in 2022 and recommendations from the ACCC on trade practices that could cause harm in unequal relationships.
The government intends to open consultation this year on the design of protections for businesses, including on whether a principles‑based prohibition should apply and whether specific unfair trading practices should be targeted to protect small businesses.
This will complement a statutory review of the amendments to strengthen unfair contract term protections to guard against unilateral changes to supply terms, restrictive contracts, and unfair market pressures and other practices small businesses can struggle with, the government says.
In a statement the lead industry body the MTA says these new protections will help to create a fairer, more equitable business environment for all stakeholders in the industry.
MTAA CEO Matt Hobbs says it is a positive step, particularly for franchise automotive businesses, including dealers and repairers, who face unique challenges within the franchising system, however there is further work ahead.
“We support any efforts to create a fairer playing field for small businesses in their interactions with large corporates,” Hobbs says.
“We remain committed to working closely with the government to develop solutions that protect automotive dealers, ensuring they are treated fairly when dealing with multinational car companies that make key decisions offshore, especially as the global auto industry undergoes its most significant transformation in over a century.”
MTA NSW CEO Stavros Yallouridis has welcomed the review and stressed elements like the MVIRI code of conduct would be instrumental in protecting the automotive repair sector.
“The vast majority of automotive businesses in NSW are small businesses, and they need strong protections to operate on a level playing field,” Yallouridis says.
“Independent repairers, service providers, and dealerships form the backbone of our sector but often face challenges including unfair supplier agreements and restrictive contracts due to their size.
“MTA NSW has been actively advocating for fairer business conditions, particularly through our involvement in the ongoing consultation for the Motor Vehicle Insurance and Repair Industry (MVIRI) Code of Conduct. Ensuring this Code is strengthened and made mandatory is crucial to rebalancing industry relationships and addressing longstanding concerns around unfair trading practices.”
“MTA NSW remains committed to supporting its members and ensuring they have the protections needed to thrive in this rapidly changing industry. We will continue working with the government to secure meaningful reforms that support a more sustainable and competitive automotive sector.”
This follows a call by the MTAA for the MVIRI Code of Conduct to be mandatory last month.
The code is currently open for consultation. Repairers can find out more about leaving feedback here.