The Federal Court has ordered Mazda Australia Pty Ltd to pay $11.5 million in penalties for misleading and deceptive conduct, and for making false or misleading representations to nine consumers about their consumer guarantee rights. The court found that Mazda made 49 separate false or misleading representations to the nine consumers who had experienced recurring and serious faults with their Mazda vehicles within two years of purchase.

The court found that Mazda ignored or rejected requests by the nine consumers for a refund or a replacement vehicle, insisting that the only remedy available was a repair. Despite multiple unsuccessful repair attempts, including complete engine replacements, Mazda offered to refund only a portion of the vehicle’s purchase price, or offered a replacement vehicle only if the consumer made a significant payment.

The Court also ordered Mazda to pay a total of $82,000 in compensation to some of the consumers. Mazda consented to this order, and has undertaken to pay a further $3,000 in compensation per vehicle.

In addition to the financial penalties, Mazda was ordered to implement an Australian Consumer Law compliance program, publish a corrective notice on its website, notify dealers of the Court’s findings, and pay a contribution to the ACCC’s costs.

“All of the consumers were given the “run-around” by Mazda while it engaged in evasions and subterfuges, provided appalling customer service and failed to make any genuine attempt to consider and apply the consumer guarantee provisions of the Australian Consumer Law,” said ACCC Deputy Chair Catriona Lowe.

“The message to the new car industry is clear, substantial penalties can be imposed on businesses which misrepresent consumer guarantee rights,” Lowe added.

“If a vehicle cannot be repaired within a reasonable time, or at all, consumers have a right under the Australian Consumer Law to a refund or replacement, and we expect car manufacturers to honour those rights promptly and without misleading consumers,” Lowe said.

“We are very pleased that the Court has ordered compensation for the consumers who had not received a full refund or replacement vehicle from Mazda.” Lowe concluded.

The ACCC instituted proceedings against Mazda in October 2019. The Federal Court handed down its decision on 30 November 2021, finding Mazda had engaged in misleading and deceptive conduct and made false or misleading representations to nine consumers about their consumer guarantee rights.

The ACCC’s appeal against the Federal Court’s decision to dismiss the ACCC’s allegations that Mazda had engaged in unconscionable conduct was dismissed on 23 March 2023. Mazda’s appeal against the Federal Court’s decision that it had made 49 false or misleading representations to consumers was also dismissed on 23 March 2023.

This case concerned seven vehicles and nine individual consumers. Models involved included Mazda 2, Mazda 6, Mazda CX-5, Mazda CX-5B, Mazda CX-3 and Mazda BT-50 purchased between 2013 and 2017.