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.

Hyundai has undertaken to:

  • notify all new customers of their rights in relation to the statutory consumer guarantees.
  • review relevant complaints received in the last 12 months
  • review its complaint handling system to ensure consumer rights are accurately considered, and consumers are provided with written reasons when a remedy is declined;
  • review its dealer policies and procedures to ensure they comply with the ACL, including in circumstances where vehicles experience a fault within a short period after purchase; and
  • provide consumers with the ability to obtain information online about any technical and/or safety issues with their vehicle and any available remedies.

Hyundai’s court enforceable undertaking is available at Hyundai Motor Company Australia Pty Ltd

Notes to editors

The new car retailing market study final report is available at New car retailing industry market study – final report

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