Holden admitted to the Australian Competition and Consumer Commission it misled customers over their legal rights regarding car repairs, replacements and refunds if there is a fault with a vehicle’s component. According to ABC, Holden confessed to telling customers a fix to various mechanical problems would not be provided because a car was serviced outside of a Holden dealership.
Additionally, Holden told customers that repairs, refunds or replacements were performed at will and were considered a “good will gesture” of the company.
Now, Holden has agreed to remedy the issue and has worked with the Australian watchdog to put in place a new set of standards that goes beyond what is deemed necessary.
“Holden has offered an undertaking that goes beyond ensuring compliance with the current consumer guarantee obligations and commits to measures in line with recommended changes to the law,” ACCC chairman Rod Sims said.
With the new set of standards, Holden will now identify multiple minor faults in its cars as one major failure. This will warrant replacements or refunds, not just a repair. The brand will also offer customers a replacement or refund of a car if a particular mechanical failure leaves the car undrivable within the first 60 days of ownership. Finally, Holden agreed to an external review of customer complaints from 2016 and beyond.
Holden isn’t alone, however. The ACCC also initiated legal action over Ford Australia. The automaker allegedly misled its customers over the rights to replace faulty transmissions. The watchdog continues to investigate a “number of companies” at this time as well.