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Morrison Government panders to dealers

The Federal Chamber of Automotive Industries (FCAI) has spoken out against the “Auto Principles Guide to Deliver for Consumers,” released today by the Federal Government.

Tony Weber, chief executive of the FCAI, said the Government’s voluntary ‘Principles’ document is a classic example of overreaction which has the potential to create confusion.

“Government intervention is needed where this is a clear market failure, not to halt progress,” Mr Weber said.

“Steps by the Government and dealers to deter change and innovation will come at the expense of consumers.  Like every other part of the retail economy, the way customers wish to buy vehicles is changing. This change should be encouraged by Government, not hindered to maintain a cosy relationship with car dealers.”

Mr Weber referred to the new principles as ‘unhelpful’ given the Australian commercial environment is already governed by a raft of regulatory checks and balances covering all parties, including dealerships.

“The Government’s most recent regulatory reforms in this area were released on 1st June 2020. The real impact of these reforms in the marketplace has yet to work its way through the system.

“Continually adjusting the framework just leads to greater uncertainty,” Mr Weber said.