Sydney, Feb 14: The Federal Court has ruled that Mazda Australia Pty Ltd must pay $11.5 million in penalties for engaging in misleading and deceptive conduct and providing false or misleading representations to nine consumers regarding their consumer guarantee rights.
According to the court’s findings, Mazda made 49 separate false or misleading representations to these nine consumers, all of whom experienced recurring and serious faults with their Mazda vehicles within two years of purchase.
Despite repeated requests for refunds or replacement vehicles, Mazda insisted that the only remedy available was repair, even after multiple unsuccessful repair attempts, including complete engine replacements. One vehicle even underwent three engine replacements.
ACC Deputy Chair Catriona Lowe criticized Mazda’s conduct, stating that the company provided poor customer service and failed to genuinely consider and apply consumer guarantee provisions as outlined in the Australian Consumer Law.
Lowe emphasized that substantial penalties can be imposed on businesses that misrepresent consumer guarantee rights, sending a clear message to the new car industry.
Under the Australian Consumer Law, if a vehicle cannot be repaired within a reasonable time or at all, consumers have the right to a refund or replacement. The ACCC expects car manufacturers to honor these rights promptly and without misleading consumers.
The Court also ordered Mazda to pay $82,000 in compensation to some consumers and an additional $3,000 per vehicle. Mazda consented to this order.
In addition to the penalties, Mazda must implement an Australian Consumer Law compliance program, publish a corrective notice on its website, notify dealers of the Court’s findings, and contribute to the ACCC’s costs.
The ruling highlights the importance of transparent and fair practices in the automotive industry, ensuring that consumers are treated fairly and provided with accurate information about their rights and entitlements.
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