Honda Australia has paid a penalty of $18,780 after the ACCC issued it with an infringement notice for an alleged breach of Motor Vehicle Service and Repair Information Sharing Scheme (MVIS scheme) information sharing requirements.
The MVIS scheme is designed to give independent repairers equitable access to the necessary diagnostic software and technical information to service and repair modern motor vehicles. It generally requires vehicle manufacturers to offer the information for sale by day, by month, and by year; or alternatively, for any period nominated by an independent repairer.
The ACCC alleges that from 1 July 2022 to 6 May 2024, Honda Australia offered to supply the software only by yearly subscription, and did not give independent repairers the option to purchase less expensive subscriptions on a daily or monthly basis.
"We allege that Honda breached the requirements of the MVIS scheme, which is designed to make vehicle servicing and repair more competitive by giving independent repairers access to the same technical information, including software, that dealerships have," Acting ACCC Chair Catriona Lowe said.
"Providing repairers with flexibility and choice in how they access information under the MVIS scheme is fundamental to increasing competition and consumer choice. Making the information available on a daily, monthly and annual basis allows independent repairers to select the access period that is most appropriate for them. This in turn enables them to be in a position to offer more competitive prices to consumers."
This is the first ACCC enforcement action for an alleged contravention of the MVIS scheme, and the ACCC continues to focus on enforcement in this area.
"We are continuing to conduct compliance checks and we will take appropriate enforcement action for non-compliance which is detected," Ms Lowe said.
"In appropriate circumstances, this may include commencing proceedings in the Federal Court, where contraventions of certain MVIS Scheme provisions may attract a penalty of up to $10,000,000 per contravention."
The ACCC will also release updated industry guidance in the coming months about the MVIS scheme.
Further information about the scheme is available on the ACCC website.
Note for editors
The ACCC is responsible for enforcing the MVIS scheme under the Competition and Consumer Act (CCA).
It is a mandatory scheme to promote competition in the Australian automotive service and repair sector that requires motor vehicle service and repair information to be made available for purchase by all Australian repairers at a price not exceeding its fair market value.
The scheme was introduced to ensure consumers benefit from competitive aftermarkets and have a choice of outlets to repair and service their cars.
The scheme adopts recommendations from the ACCC's 2017 new car retailing industry market study which found that independent repairers were experiencing continued problems accessing information needed to repair and service modern cars.
Most independent repairers in Australia are small businesses, and one of the ACCC's enforcement and compliance priorities is to ensure that small businesses receive the protections of competition and consumer laws.
While the ACCC has a broad oversight and enforcement role for the MVIS scheme, the Australian Automotive Service and Repair Authority oversees the day-to-day operations of the scheme in the role of 'Scheme Adviser'.
The payment of a penalty specified in an infringement notice is not an admission of a contravention of the CCA.
The ACCC can issue an infringement notice when it has reasonable grounds to believe a person or business has contravened certain provisions of the MVIS scheme. The ACCC can also take legal action in the Federal Court for alleged contraventions.
More information about the obligations of data providers, such as vehicle manufacturers, under the scheme is available on the ACCC website.
Background
Honda Australia is the exclusive importer and distributor of Honda-branded vehicles in Australia and a data provider under the MVIS scheme.
Under the scheme, Honda Australia provides repairers with access to its diagnostic software known as the Honda Diagnostic System software suite (i-HDS Software). The i-HDS Software can be used by repairers for a range of functions, including diagnosis and repair of electronic systems and reprogramming electronic control units in Honda vehicles.
