The Competition and Consumer Protection Commission (CCPC) has reminded motor dealers that it is an offence under competition law to prevent motorists from choosing who services or repairs their car and what parts they use.
The target of the warning is motor dealers who tie warranties and guarantees on cars they sell to conditions specifying they must be serviced and repaired by authorised dealers and only using parts supplied by the manufacturer. While this might give the dealer some comfort when standing over an extended warranty – as well as a potential source of income – it is also anti-competitive. These practices – which include denying independent garages access to diagnostic data or tools – drive up prices, limit choice, and harm both consumers and independent garages, says the CCPC.
The industry can now consider itself warned. No formal proceedings have been instigated at this stage but the CCPC says it is seeking information from motor distributors and urged them to review and amend any arrangements that might constitute anti-competitive behaviour. Assuming the motor industry complies, the result should be more choice and better value for car owners when it comes to repairs and servicing.
However, the CCPC seems to have assumed that all garages are equal, that none of them use substandard replacement parts and all are competent in the use of the sophisticated diagnostic tools supplied by manufacturers.
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There is no formal accreditation or certification of independent garages although the Society of the Motor Industry runs a scheme covering crash repairs. Insurance companies also have lists of approved garages for repairs. But when it comes to servicing and other routine repairs, consumers have little to go on apart from an individual garage’s reputation.
Ensuring that independent garages meet a minimum standard would appear to be a reasonable quid-pro-quo for demanding that motor dealers share diagnostic tools and stand over warranties when third parties are involved.
