Consumer laws shift from dealers to car makers under fixed-price sales model

AutoExec Summary
The adoption of the fixed-price model in Australia has shifted responsibility for upholding consumer laws from car dealers to car manufacturers such as Honda and Mercedes-Benz. Under this model, car buyers now have to deal with the manufacturers directly for warranty issues. The Australian Automotive Dealers Association sought clarification from the ACCC, which stated that the car companies are now responsible for honoring Consumer Guarantees. Dealerships are no longer incentivized to advocate for customers, as the manufacturers are now treated as the supplier. However, dealerships can still be held accountable for breaches of the Australian Consumer Law under the fixed-price model.

Brands mentioned: Honda, Mercedes-Benz.