Official review to protect owners sold dodgy ‘lemon’ cars

    May 21, 2015
    NEWS.com.au


Buyer beware ... Consumer groups and members of the Federal Government are calling for an investigation into sales of ‘lemon’ cars.   

EXCLUSIVE: Momentum is building for a national “lemon law” to help owners of dodgy cars, with a key federal senator declaring support for increased protection amid revelations the consumer cops are examining “vehicle manufacturer conduct”.

Ahead of an official review of existing legislation — a News Corp Australia probe of the case for a lemon law reveals:



INFLUENTIAL but rarely-heard-from crossbench senator Ricky Muir of the Australian Motoring Enthusiast Party wants the review to consider “greater consumer protection … in the area of motor vehicle sales and repairs”;   

HIGHLY regarded Consumer Action Law Centre is seeking a law that defines a lemon as “a vehicle has been repaired at least three times by the manufacturer or importer and the vehicle still has a defect or if the vehicle is out of service for 20 or more days in total due to a defect;

THE Australian Competition and Consumer Commission is “actively investigating … vehicle manufacturer conduct in the context of consumer guarantee obligations” and is “increasingly concerned about reports of consumers having difficulty with their new cars”; and

THERE is no evidence that any new car owner has obtained a refund or replacement using the Australian Consumer Law (ACL), introduced in 2011.



Consumer Action CEO Gerard Brody said in the ACL review it would also argue for

a switch in the “onus of proof” for at least the first six months of ownership.

“The trader should be required to prove that the goods are of an acceptable quality rather than this burden sitting with the consumer,” Mr Brody said.

“We find that recalcitrant traders repeatedly repair cars and say they are working when they aren’t. This requires consumers to complain and complain and end up the tribunal which can mean they give up.”   

The federal minister responsible for consumer affairs Bruce Billson revealed the ACCC investigation to News Corp Australia yesterday.

Of the existing law, he said: “If you buy a motor vehicle and it has a major failure, you have the right to choose between a refund or a replacement product. While not called a ‘lemon law’, consumer guarantees can provide similar redress.”


That said, the review of the ACL later this year “will be an opportunity to test how well the law is working and to see if changes are needed”.

Top consumer group Choice’s spokesman Tom Godfrey said the ACL review was timely.

“Too often we hear of consumers being driven into the aftermarket and given the run around by dealers when they seek redress,” Mr Godfrey said. “Some consumers are wondering how car companies are getting away with off-loading lemons”.   

I see absolutely no problem with returning a seriously faulty new vehicle under warranty.  It should be a basic right if faults are above a certain level.

Simple really - full replacement warranty - then the comp-any wil flog the car off to one of its workers at a discount that still covers costs or ship it to Bangla Desh....

cods wrote on May 27^th, 2015 at 11:18am:


Yeah - maybe trade the old worn out model on a new one that handles tighter....



Already got those - they're called 'divorce laws'....