Consumer watchdog issues warning to Irish motor industry

By Cillian Sherlock, PA

The Irish motor industry has been told to stop limiting consumer choice, by the State competition watchdog.

The Competition and Consumer Protection Commission (CCPC) said it had received reports from motorists who have been prevented or discouraged from having their vehicles serviced or repaired at independent garages.

In an industry-wide letter, the agency has reminded the sector that, by law, consumers cannot be prevented from freely choosing who services or repairs their vehicles, or what parts they use.

The CCPC said some motorists claim to have been told that their warranty will be void if they have their vehicle serviced or repaired outside an authorised dealership network, or if they use non-original or non-manufacturer supplied spare parts.

Non-original spare parts can be used in repairs not covered by the vehicle warranty without the warranty being affected, so long as they are of “matching quality” with the originals.

Others claim to have been blocked from using independent garages because of restricted access to essential diagnostic data or tools which were not made available by the manufacturer or distributor.

The CCPC said such practices can break competition law, drive up prices, limit choice, and harm both consumers and independent garages.

The watchdog is seeking information from distributors of motor vehicles in Ireland and has urged them to review and, if necessary, amend any arrangements they have in place.

On a non-criminal basis, the CCPC may impose administrative financial sanctions on businesses and associations of undertakings of up to €10 million, or 10 per cent of its annual worldwide turnover, whatever is greater, for breaches of competition law.

Alternatively, more serious breaches of competition law, including cartel behaviour, may be prosecuted as criminal offences, and fines of up to €50 million, or 20 per cent of a business’s annual worldwide turnover, may be imposed by the court upon conviction on indictment.

While formal proceedings have not been instigated against any particular firm, the CCPC has emphasised that it will take action if illegal practices are identified.

Additionally, the CCPC has informed independent garages of their right to freely repair vehicles, to use non-original spare parts which are of a matching quality, and to access repair and diagnostic tools.

Craig Whelan, director of antitrust at the CCPC, said: “Motorists must be free to choose where they service their vehicles and what parts they use without fear of losing their warranty.

“Independent garages must not be blocked from accessing essential diagnostic data or tools.

“These restrictive practices hurt consumers, stifle competition, and unfairly advantage authorised dealerships. ”

Motor vehicle importers and the main distributors across Ireland have been given until Wednesday August 6 to make a submission to the CCPC after they have reviewed their own arrangements.