Honda Australia has paid a penalty of more than $18,000 after Australia’s consumer watchdog alleged the carmaker wasn’t making information available to independent repairers at a fair price.
The $18,780 penalty was for an alleged breach of the Motor Vehicle Service and Repair Information Sharing Scheme (MVIS), marking the first time the Australian Competition and Consumer Commission (ACCC) has issued an infringement notice for a breach of the scheme.
The MVIS, which came into effect on July 1, 2022, was introduced to give independent repairers access to the necessary diagnostic software and technical information to service and repair modern cars. It requires this information to be made available for purchase by all Australian repairers “at a price not exceeding its fair market value”.
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The ACCC alleges that from July 1, 2022 to May 6, 2024, Honda Australia offered to supply its Honda Diagnostic System Software suite only via an annual subscription and didn’t give independent repairers the option of more affordable daily or monthly subscriptions.
“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 notes the payment of a penalty specified in an infringement notice isn’t an admission by a company that it has contravened the Competition and Consumer Act.
Honda says it only offered annual subscriptions until recently due to “technological limitations of the software”.
“Earlier this year, Honda Australia commissioned the development of a new technology to enable independent repairers to have access to the i-HDS Software for more limited time periods, in addition to the existing annual subscription offering,” the company said in a statement.
“As a result, since 6 May 2024, independent repairers have had the option to select a daily, monthly or annual i-HDS Software subscription.
“Our customer experience and partner satisfaction is paramount, and Honda Australia is committed to providing a high level of service across its network. Honda Australia has fully cooperated with the ACCC in relation to this matter.”
The ACCC says it’s continuing to conduct compliance checks and will take action if it detects any non-compliance by companies.
“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,” said Ms Lowe.
The ACCC, which is responsible for enforcing the mandatory MVIS scheme under the Competition and Consumer Act, will also release updated industry guidance in the coming months about the scheme.
The scheme was introduced to ensure greater competition, giving small businesses a leg up and giving consumers more options when it comes to repairing and servicing their cars.
The Motor Trades Association of Australia (MTAA) has weighed in on the ACCC’s penalty notice against Honda Australia, welcoming the watchdog’s move.
“This enforcement action demonstrates that while the scheme is relatively new the ACCC is watching and willing to take action to make sure the scheme is successful and there is an even playing field for independent repairers across Australia, no matter the brand of car,” said MTAA CEO Matt Hobbs in a statement.
“Whilst we’re pleased to see the scheme functioning effectively, there is still room for improvement. As the scheme is still relatively new it is critical that repairers let AASRA and ACCC know of any issues that have in gaining access to information needed to fix Australian cars.
“The Australian car market is continuing to evolve – new technologies including driver assistance as well as great numbers of hybrids and EVs going on sale and the MVIS will need to evolve with it.”
