On 3 December 2025, Australian new car franchise dealers were advised that the Australian Automotive Dealer Association (AADA) had commissioned Emeritus Professor Dr Jenny Buchan to undertake an independent Root and Branch Review of the Australian Consumer Law (ACL) and the Franchising Code of Conduct (the Code) as they apply to the new vehicle retail sector.
Today, the AADA is releasing both Professor Buchan’s findings and AADA’s response to the Review to Australian dealers.
AADA Position on Professor Buchan’s Report
AADA welcomes Professor Buchan’s report. The publication of the Review and AADA’s response comes at a critical time for the automotive retail sector. When AADA commissioned the Review, the objective was not to advocate for a particular outcome or validate a predetermined position. Rather, it was to facilitate an independent examination of how the consumer guarantee framework operates in practice for consumers, dealers and Original Equipment Manufacturers (OEM) within the sector. AADA believes Professor Buchan has successfully achieved that objective.
AADA Response to the Review
AADA’s analysis of the Review has helped identify key areas requiring reform and outlines the implications of the findings for consumers, dealers and OEMs. The AADA response presents a practical pathway for improving the current regulatory framework.
Key Reform Measures Recommended by AADA
The findings of the Review demonstrate that the challenges identified are not isolated issues but rather symptoms of broader structural problems within the existing framework. In response, AADA recommended pathways to reform include:
- Mandatory and earlier OEM participation in manufacturing defect claims.
- A comprehensive review to ascertain that the current ACL framework reflects the realities and equity of the new vehicle market as it applies to the allocation of responsibilities between dealer and OEM.
- Targeted reform of the ACL consumer guarantee framework for motor vehicles, including addressing the ambiguity of key ACL concepts such as major fault, reasonable time and the rejection period.
- Action to ensure full OEM indemnification for all dealer costs incurred and the treatment of depreciation in vehicle buybacks.
AADA Acknowledgements
The Review was conducted independently and drew on face-to-face interviews and written evidence delivered from a broad range of stakeholders. Naturally those stakeholders included a large cohort of dealers from almost every Australian state, who played a crucial role by sharing their experiences and providing evidence to the reviewer. AADA sincerely thanks those dealers for hosting Professor Buchan and contributing their time and insights to the process.
Expected Media Interest
AADA anticipates a notable short-term increase in media commentary following the public release of the Review tomorrow, particularly regarding its implications for Australian consumers and dealers. AADA will support any dealer approached by media outlets who are seeking a dealer comment or interview. Dealers are encouraged to refer all media enquiries directly AADA wherever possible.
Next Steps
The final Review provides additional momentum for AADA’s engagement with key government departments and ministers. However, this represents only the first strategic step in AADA’s pursuit of reform to the ACL and the Code. As a strategic next step, AADA will commission an economic assessment for consideration by the Australian Government. This assessment will include a cost-benefit analysis quantifying the impact of maintaining the status quo.
More Information
AADA members are encouraged to contact AADA with any questions, feedback or insights regarding the Review’s findings, AADA’s strategic approach to ACL reform or other issues.