31st January, 2019 · News

ASIC Focussed on Dealer Warranties

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ASIC has notified AADA that it is conducting a review of the warranty market and is looking to engage with stakeholders. AADA attended ASIC’s first Warranties Stakeholder Meeting in December at which the regulator expressed its concerns with elements of the existing extended warranty system, including: discretionary pricing, some sales practices where the consumer receives little benefit from the warranty, lack of rebates and low claims ratios.

ASIC has flagged that there will be two further meetings in late February or early March at which they will provide more detailed presentations informed by ASIC’s data analysis. AADA has already expressed dismay at ASIC’s sole focus on the automotive industry when there are many other retail sectors that are involved in the warranty space. AADA is working with our members and other stakeholders and will be represented at all ASIC meetings on this issue.