The consumer watchdog has commenced federal court proceedings against Mazda Australia for alleged misrepresentation of consumer law.
The Australian Competition and Consumer Commission says customers of one of the seven new Mazdas bought between 2013 and 2017, which presented unexpected loses of power and multiple engine replacements within two years of purchase, were “misled” in the company’s obligations under Australian Consumer Law.
When the defective vehicles were taken to Mazda dealerships – one of which required being off the road for four months – customers, the ACCC claims, were denied their legal remedy.
Additionally, those customers, the ACCC says, were “forced to contact Mazda multiple times over months and even years” as faults continued to plague the defective vehicles in question.
The regulator deplores Mazda’s alleged offering to only refund a portion of the cars’ purchase price, or to provide a replacement on the condition the customer contributed a significant payment towards it.
In one case, the ACCC says Mazda’s offer consisted of an extended warranty and free servicing.
The models in question included a Mazda 2, 6, CX-5, CX-5D, CX-3 and BT-50.
One customer, whose vehicle required an engine replacement, asked for a refund in early 2018 having been told his stricken three-year-old $19,000 hatch has likely had “a major engine failure” by the dealer who advised him to contact Mazda Australia for the remedy her sought “like any other consumer product”, the ACCC’s statement says. The manufacturer told him its cars were “actually not” like other consumer product.
“Our case is that Mazda gave these consumers the ‘run around’ while denying their consumer guarantee rights,” ACCC chair Rod Sims says.
“Mazda repeatedly refused to provide a refund or a replacement at no cost to the consumers and pressured them to accept lesser offers which were made by Mazda only after multiple failures of the vehicles and repeated attempted repairs,” he explains.
Under Australian Consumer Law the retailer, manufacturer or distributor of a product which fails to meet “acceptable quality” by suffering a “major failure” consumers have the right to ask for their choice of a replacement or refund.
The retailer can’t refuse to help you by sending you to the manufacturer or importer, the ACCC’s Consumer Guarantees states, and signs stating ‘No refunds’ or ‘No refunds or exchanges on sale items’ are unlawful, as they imply that it’s not possible to get a refund under any circumstances, including for faulty items.
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