Consumer watchdog vows to crack down on motor industry 

'Independent garages must not be blocked from accessing essential diagnostic data or tools,' said Craig Whelan of the Competition and Consumer Protection Commission. Picture: iStock

Ireland’s consumer watchdog has vowed to take action against the motor industry for “anti-competitive practices”, such as telling customers their warranty will be void if they go to independent garages for repairs.

The Competition and Consumer Protection Commission (CCPC) has written an industry-wide letter to say that consumers must not be prevented from freely choosing who services or repairs their vehicles, or what parts they use.

While they have not yet issued formal proceedings against any company, the CCPC said it stands ready to act if illegal practices are identified.

“Motorists must be free to choose where they service their vehicles and what parts they use without fear of losing their warranty,” its director of antitrust Craig Whelan said.

"Independent garages must not be blocked from accessing essential diagnostic data or tools." 

These restrictive practices hurt consumers, stifle competition, and unfairly advantage authorised dealerships. 

The CCPC said its action was prompted by contacts made to its helpline and complaints mailbox. This included that a warranty on a vehicle had been declared invalid because a consumer got it repaired at an independent garage outside of the brand’s network of “authorised repairers”.

It also said that motorists had been warned their warranty would be made void if non-manufacturer supplied parts were used in routine maintenance or repairs.

Furthermore, it said certain independent mechanics are unable to repair or service vehicles because they cannot access repair and diagnostic tools and onboard diagnostic data for some cars on Irish roads.

Restrictions on competition 'leads to higher prices' 

Mr Whelan told the motor companies: “Restrictions on competition between independent repairers and authorised repairers leads to higher prices and lower quality of service for motorists.

“The invalidation of warranties on the basis of getting a vehicle serviced or repaired outside the brand’s authorised repairer network further results in increased costs for motorists as they may have to pay out of pocket for repairs that may otherwise have been covered under the vehicle’s warranty.” 

He said the CCPC has the power to take enforcement action against businesses suspected of engaging in these practices with the power to dish out fines stretching into tens of millions of euro.

The motor companies have been told to review the agreements they have in place to ensure they do not result in “anticompetitive conduct”.

If the arrangements they do have do constitute this, they should seek to have them amended or revised.

“You should engage with your authorised repairers to ensure that motorists engaging with your partners are not mistakenly led to believe that their warranty may be at risk if they were to use independent repairers or non-original spare parts for routine maintenance and repairs not covered by the vehicle warranty,” Mr Whelan added.

The CCPC is also telling independent garages they have the right to freely repair vehicles, use non-original parts which are of a matching quality and to access repair and diagnostic tools.

It urged any such garages to report unfair experiences, such as being prevented access to diagnostic data or tools, to the CCPC.