The peak body representing franchised new car Dealers has welcomed comments by ACCC Chair, Rod Sims, in relation to unfair contract terms.
“We strongly support the ACCC’s recommendation that the thresholds for small businesses be revisited in the upcoming review of the business-to-business unfair contract term regime,” said AADA CEO David Blackhall.
“The ACCC is right in stating that most franchised new car Dealers do not qualify under these thresholds due to the high value of their stock and number of employees,” said Mr Blackhall.
“New car Dealers are locked into agreements with vehicle Manufacturers which have unfair contract terms, such as unilateral variation clauses. However, due to the current small business thresholds, most of our members do not enjoy protections against these terms,” he said.
“We look forward to participating in the Government’s review of the unfair contract term law in the coming months,” he said.
The AADA advocates for the establishment of an Automotive Industry Code of Conduct to regulate behaviour between new car Dealers and offshore vehicle Manufacturers. Such a code should include protections against unfair contract terms as well as other industry-specific behaviours.