Honda fined by watchdog for alleged breach of service and repair scheme, car makers on notice
09/16/2024 09:39 PM
The ACCC has handed Honda Australia a penalty for an alleged breach of the MVIS scheme, with possible fines of as much as $10 million if it ends up in court.
Honda Australia has paid a penalty of $18,780 after the Australian Competition and Consumer Commission( ACCC) issued it with an infringement notice for allegedly breaching the Motor Vehicle Service and Repair Information Sharing Scheme (MVIS scheme).
The MVIS scheme was introduced in July 2022 to give independent repair workshops fair access to the necessary diagnostic software and technical information needed to work on modern vehicles, and for consumers to have more choice of outlets.
Generally, car makers offer the information on a daily, monthly or annual basis – but according to consumer watchdog the ACCC, between 1 July 2022 and 6 May 2024 Honda offered it only via a yearly subscription.
The ACCC alleges that Honda additionally did not give independent repairers the option to purchase less expensive 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," the ACCC's Acting Chair, Catriona Lowe, said.
"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."
A Honda Australia spokesperson told Drive that this yearly subscription oversight has since been remedied, and chalked it up to "technological limitations of the software".
"The i-HDS Software is offered to independent repairers for use in performing diagnostic functions on and repairing Honda vehicles. Until recently, independent repairers were offered access to the i-HDS software through annual subscriptions, rather than monthly or daily subscriptions. This was mainly due to technological limitations of the software," Honda said in a statement.
"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. 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."
This is the first time the ACCC has taken enforcement action for an alleged contravention of the service and repair scheme, claiming it is continuing to conduct compliance checks and will take further action if needed – with possible fines running up to as much as $10 million per breach.
Having paid the fine doesn't necessarily mean Honda is off the hook, however, with the ACCC stating that "payment of a penalty specified in an infringement notice is not an admission of a contravention of the CCA (Competition and Consumer Act)" – and it can issue one just because it has 'reasonable grounds' to believe a breach has taken place.
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