New law to force car companies to share vehicle information with independent repairers

Independent repairers will soon be on a more level playing field with auto manufacturers, with a new law making it illegal for car companies to withhold service and repair information from qualified mechanics coming into force next year.

Legislation on data sharing was introduced into Federal Parliament this week requiring manufacturers to provide independent repairers with the same information they give to their authorised dealers, including access to software updates, technical service bulletins and computer diagnostics.

It means your local mechanic won’t have to get your car towed to a dealer if a module needs to be changed and programmed — something most can’t currently do in their own workshop — so labour costs are also likely come down.

Australian Automotive Dealer Association chief executive James Voortman said the service and repair information would be shared on fair and reasonable commercial terms to suitably vetted and qualified technicians.

“We welcome the introduction of this legislation into Parliament and will continue to work with the Government and industry on the important underlying detail,” he said.

“Franchised dealers take great pride in the quality of service they provide to their customers and make huge investments in factory training of their qualified technicians, along with having the latest tools, equipment and facilities.

“Independent repairers who choose to commit to similar levels of investment for their customers and are suitably qualified should be entitled to compete with dealers on fair and reasonable grounds and this legislation will give them the chance to do that.”

The scheme is due to come into effect on July 1, 2022, with work on the underlying rules due to start soon.

The AADA said a scheme adviser would be appointed to oversee operations and report back to the Government on progress and, if necessary, work with the Australian Competition and Consumer Commission to enforce the rules.

The ACCC has previously recommended a “mandatory scheme to share technical information with independent repairers on commercially fair and reasonable terms”, which includes real-time access to data and security-related technical information.

Australian Consumer Law already warns people about “misleading statements” saying they have to service their vehicles at a dealer, or they will void their rights. It makes it clear if a manufacturer’s warranty requires a vehicle to be serviced by a dealer, this may constitute anti-competitive conduct under the Competition and Consumer Act.

The Federal Chamber of Automotive Industries, which represents vehicle manufacturers and importers, has been quick to weigh in on the new legislation.

FCAI chief executive Tony Weber supported “the intent” but questioned its administrative burden and compliance costs.

“This is a red tape nightmare for everyone concerned,” he said.

“Repairers will have to make up to 60 separate annual applications to the car companies and other data providers.”

He said a simple change to the legislation could have streamlined the process to just one application to access information for all Australian car brands.

“Overnight, every car company in Australia will become a separate de facto ‘regulator’,” he said.

Mr Weber argued that the legislation, as drafted, placed responsibility on each car company to check a range of information, including proof the repairer was seeking to carry on a service and repair business and, in some cases, included police checks.

Automotive Repairers Council of Australia convenor Mike Smith described the legislation as a “great win” for repairers and consumers, especially in the regions where there might not be brand dealerships.

“This will put all repairers on a level playing field, similar to the USA and Europe,” he said.