Update ACCC: Hyundai to improve consumer guarantees approach
8 February 2018
The ACCC has today accepted a court enforceable undertaking from Hyundai to improve its compliance with consumer guarantee obligations under the Australian Consumer Law (ACL). Customers have automatic rights under the ACL, regardless of whether a problem with a new car is covered by the manufacturer’s warranty, and may in fact be entitled to a better remedy under the consumer guarantees than a warranty.
“Through our new car retail market study, we identified industry-wide issues with the way car manufacturers were handling consumer guarantee complaints. The Australian Consumer Law provides automatic rights to consumers and imposes obligations on manufacturers and dealers that cannot be excluded, restricted or modified,” ACCC Chairman Rod Sims said.
“Hyundai worked constructively with us and formally committed to improve their systems to comply with consumer guarantees. By putting the consumer law front and centre, Hyundai is seeking to ensure its customers get what they’re legally entitled to when they experience a problem with their vehicle.”
“More broadly, the car industry needs to lift its game in handling consumer guarantee complaints. The ACCC calls on other car manufacturers to follow Hyundai’s lead by providing similar formal commitments,” Mr Sims said.
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Comment:
Faulty goods and substandard services are a significant cost, both to the consumer and society as a whole. A UK study, for example, showed that problems with unsatisfactory goods and services set the country back more than 6 billion pounds per year, not to mention the time wasted and stress created.
In addition, problems with warranties and failure to rectify faulty goods are a significant generator of consumer complaints. In Malaysia, for example, the National Consumer Complaints Centre receives more than 40 000 complaints each year, many of which stem from unclear warranty terms. Issues include warranties not valid in different countries and disputes over responsibility, resulting in consumers being bounced from manufacturer to retailer, often leaving a bitter taste in their mouth.
A new standard being developed aims to remove confusion and frustration by providing guidelines for clear and effective consumer warranties, improving confidence for purchasers, retailers and manufacturers, and smoothing the way for better trade.
The new standard will be developed with guidance drawn from ISO/IEC Guide 14:2003, Purchase information on goods and services intended for consumers, with the input of numerous consumer and standardization experts around the world.
If you are interested in getting involved in the development of the new standard, please contact your national ISO member.
The ACCC has today accepted a court enforceable undertaking from Hyundai to improve its compliance with consumer guarantee obligations under the Australian Consumer Law (ACL). Customers have automatic rights under the ACL, regardless of whether a problem with a new car is covered by the manufacturer’s warranty, and may in fact be entitled to a better remedy under the consumer guarantees than a warranty.
“Through our new car retail market study, we identified industry-wide issues with the way car manufacturers were handling consumer guarantee complaints. The Australian Consumer Law provides automatic rights to consumers and imposes obligations on manufacturers and dealers that cannot be excluded, restricted or modified,” ACCC Chairman Rod Sims said.
“Hyundai worked constructively with us and formally committed to improve their systems to comply with consumer guarantees. By putting the consumer law front and centre, Hyundai is seeking to ensure its customers get what they’re legally entitled to when they experience a problem with their vehicle.”
“More broadly, the car industry needs to lift its game in handling consumer guarantee complaints. The ACCC calls on other car manufacturers to follow Hyundai’s lead by providing similar formal commitments,” Mr Sims said.
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Comment:
Faulty goods and substandard services are a significant cost, both to the consumer and society as a whole. A UK study, for example, showed that problems with unsatisfactory goods and services set the country back more than 6 billion pounds per year, not to mention the time wasted and stress created.
In addition, problems with warranties and failure to rectify faulty goods are a significant generator of consumer complaints. In Malaysia, for example, the National Consumer Complaints Centre receives more than 40 000 complaints each year, many of which stem from unclear warranty terms. Issues include warranties not valid in different countries and disputes over responsibility, resulting in consumers being bounced from manufacturer to retailer, often leaving a bitter taste in their mouth.
A new standard being developed aims to remove confusion and frustration by providing guidelines for clear and effective consumer warranties, improving confidence for purchasers, retailers and manufacturers, and smoothing the way for better trade.
The new standard will be developed with guidance drawn from ISO/IEC Guide 14:2003, Purchase information on goods and services intended for consumers, with the input of numerous consumer and standardization experts around the world.
If you are interested in getting involved in the development of the new standard, please contact your national ISO member.
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