Honda Australia fined $18,780 for alleged breach of service and repair scheme
Honda Australia has been fined $18,780 for an alleged breach of the Motor Vehicle Service and Repair Information Sharing Scheme (MVIS scheme) information sharing requirements.
The MVIS scheme is designed to provide independent repairers with equitable access to necessary diagnostic software and technical information to service and repair modern motor vehicles.
The Australian Competition and Consumer Commission (ACCC) alleges that from 1 July 2022 to 6 May 2024, Honda Australia offered to supply the software only by yearly subscription, and did not give independent repairers the option to purchase less expensive subscriptions on a daily or monthly basis. This is the first ACCC enforcement action for an alleged contravention of the MVIS scheme.
“We allege that Honda breached the requirements of the MVIS scheme, which is designed to make vehicle servicing and repair more competitive by giving independent repairers access to the same technical information, including software, that dealerships have,” said Acting ACCC Chair Catriona Lowe.
“Providing repairers with flexibility and choice in how they access information under the MVIS scheme is fundamental to increasing competition and consumer choice. Making the information available on a daily, monthly and annual basis allows independent repairers to select the access period that is most appropriate for them. This in turn enables them to be in a position to offer more competitive prices to consumers.”
The ACCC will also release updated industry guidance in the coming months about the MVIS scheme. The ACCC is responsible for enforcing the MVIS scheme under the Competition and Consumer Act (CCA). The scheme was introduced to ensure consumers benefit from competitive aftermarkets and have a choice of outlets to repair and service their cars.
Most independent repairers in Australia are small businesses, and one of the ACCC’s enforcement and compliance priorities is to ensure that small businesses receive the protections of competition and consumer laws.
“We are continuing to conduct compliance checks and we will take appropriate enforcement action for non-compliance which is detected,” said Lowe. “In appropriate circumstances, this may include commencing proceedings in the Federal Court, where contraventions of certain MVIS Scheme provisions may attract a penalty of up to $10,000,000 per contravention.”
Honda Australia is the exclusive importer and distributor of Honda-branded vehicles in Australia and a data provider under the MVIS scheme. Under the scheme, Honda Australia provides repairers with access to its diagnostic software known as the Honda Diagnostic System software suite (i-HDS Software).