MAZDA MOTORS AUSTRALIA IS BEING taken to court by consumer watchdog ACCC for what is being called “unconscionable conduct and false or misleading representations” made to its customers.
The Australian Competition and Consumer Commission has often been accused of picking its fights, but in this case alleges that several Mazda customers between 2013 and 2017 suffered breakdowns and weren’t given sufficient information about what caused the problems, or what Mazda had done to rectify them. The ACCC also alleges that customers had been lied to about the severity of the faults and that customers had been fobbed off to case managers who were in no position to actually solve problems.
Customers were also told that they weren’t entitled to a refund or free replacement vehicle when, in fact, they were entitled to both. It is also alleged that customers were offered less money than their vehicles were worth and then pressured into accepting the offer by telling them it was a short term and final offer, rubbing salt into the wound by allegedly telling customers who wanted a refund or replacement vehicle to take legal action if they were dissatisfied.
This action by the ACCC comes a few weeks after Mazda recalled more than 35,000 vehicles, including the best-selling Mazda3, Mazda6 and CX-5 models. The recall applies to cars built between 2012 and 2018 and sold between January 26, 2012 and August 10, 2018.
Product Safety Australia, which is in charge of the recall, said drivers of affected cars may notice a gradual drop in engine power, multiple warning lights being activated, a gradual increase in stopping distance, the engine stalling and refusing to restart and/or smoke coming from the engine.
Mazda Australia will be contacting the owners of affected models with instructions for having the fault rectified. Vehicles’ software will also be updated. All repairs will be carried out at no cost to the owners. For more information, concerned owners can contact Mazda Australia’s customer service on 1800 034 411. The full recall notice can be read here
Some of the claims made by the ACCC may be open to question. One owner reports “being pressured” into accepting $13,000 for a Mazda2 purchased “a few years earlier” for $19,000. According to online valuations, that price doesn’t seem unreasonable. Another case of “I was robbed” comes with an owner who had ongoing problems with a CX-5 and eventually settled the matter for $16,000, once again a price broadly in line with the Red Book valuation for a five-year-old car.
However, that doesn’t in any way excuse or compensate for the inconvenience, stress and expense of owning a chronically unreliable car.
It is a fact that consumers continue to face barriers in standing up for their consumer rights against car companies.
The ACCC is taking Mazda to court seeking penalties, declarations, injunctions, consumer redress, a publication order and an order requiring the implementation of a compliance program.
Responding on behalf of the company, senior manager public relations and corporate communications, Mark Flintoft, issued the following statement:
“Mazda Australia recognises that the purchase and ownership of a new car is a major investment for Australian consumers. As such, Mazda Australia’s objective is to always to provide the ultimate customer experience; an experience that has been consistently confirmed as the highest by industry and independent surveys at purchase and service milestones. In doing so, it consistently exceeds its legal obligations. It is, therefore, disappointed that the ACCC has chosen to commence legal proceedings against it for alleged breaches of the Australian Consumer Law. Those proceedings will be vigorously defended.”
Along with many thousands of Mazda owners, we will await developments with interest.