The Australian Automotive Dealer Association (AADA) welcomes the announcement from the
Albanese Government to commence consultation to extend the ban on unfair contract terms to
all franchisees including our franchised new car dealer members.
The AADA represents nearly 4,000 Australian new car franchisees across the country who are
all in commercial relationships with multinational firms. Extending the ban on unfair contract
terms to cover the new car sector will go some way to addressing the power imbalance in our
sector and help protect the over 68,000 Australians our members employ.
“This consultation is a welcome first step to legislate the Albanese Government’s election
commitment ban on the use of unfair contract terms and importantly, unfair trading practices in
the automotive franchising sector,” said AADA CEO James Voortman.
“Several Senate inquiries and Federal Court Cases have shown that franchisors will arbitrarily
include unfair contract terms in their contracts, reinforcing the power imbalance which exists in
the franchising sector.”
“The automotive industry is going through the most significant transition Australia has seen, with
a record number of new brands entering the market and legacy manufacturers struggling to
compete.”
“Extending this ban to the franchising sector will ensure that Australian automotive businesses
are better placed to stand up to contractual terms that unfairly favour automotive manufacturers
at the expense of dealers.”
The AADA will now continue to advocate for the Albanese Government to legislate the remaining
election commitment, and the missing piece of the puzzle, the ban on unfair trading practices in
franchising.