Mazda to pay over $11.5 million fine for faulty vehicles
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A recent landmark ruling has sent shockwaves through the automotive industry and has significant implications for consumers.
Mazda has been ordered to pay a hefty fine for misleading customers about their consumer rights in relation to faulty vehicles.
The Federal Court found that Mazda had made 49 separate false or misleading representations to nine customers over seven vehicles that had serious and recurring faults within two years of purchase.
The vehicles in question were Mazda 2, 6, CX-5, CX-5B, and BT-50 models purchased between 2013 and 2017.
The cars had undergone several unsuccessful repairs, including engine replacements.
In one extreme case, a car had its engine swapped out three times.
Despite these ongoing issues, Mazda was found to have ignored or rejected requests by the customers for a refund or replacement car, and insisted that the only remedy was a repair.
The manufacturer only agreed to refund a portion of the car's price or replace the car if the customer made a significant payment.
This practice was deemed in violation of consumer rights.
The Australian Competition and Consumer Commission (ACCC) Deputy Chair Catriona Lowe claimed Mazda gave its customers the 'run-around' while providing 'appalling' service and engaging in evasions and deceit.
'If a vehicle cannot be repaired within a reasonable time, or at all, consumers have a right under the Australian Consumer Law to a refund or replacement, and we expect car manufacturers to honour those rights promptly and without misleading consumers,' Lowe said.
The court has ordered Mazda to pay $11.5 million in penalties after the manufacturer's appeal against a prior ruling was dismissed last year.
Moreover, Mazda was ordered to pay an additional $82,000 in compensation to some of the consumers, implement a consumer law compliance program, publish a corrective notice on its website, notify dealers of the court findings and pay part of the ACCC's costs.
Mazda has agreed to compensate affected parties and to pay a further $3000 per vehicle.
'Mazda is, and has always been committed to ensuring the best possible outcomes for its customers, having regard to their rights under the law,' they said.
'We are carefully reviewing the Court's decision with a view to determining our response.'
What are your thoughts on this case, members? Have you had a similar experience with a car manufacturer? Share your stories in the comments below.
Mazda has been ordered to pay a hefty fine for misleading customers about their consumer rights in relation to faulty vehicles.
The Federal Court found that Mazda had made 49 separate false or misleading representations to nine customers over seven vehicles that had serious and recurring faults within two years of purchase.
The vehicles in question were Mazda 2, 6, CX-5, CX-5B, and BT-50 models purchased between 2013 and 2017.
Mazda has been ordered by the Federal Court to pay an $11.5 million fine. Image source: Facebook / Mazda Australia.
The cars had undergone several unsuccessful repairs, including engine replacements.
In one extreme case, a car had its engine swapped out three times.
Despite these ongoing issues, Mazda was found to have ignored or rejected requests by the customers for a refund or replacement car, and insisted that the only remedy was a repair.
The manufacturer only agreed to refund a portion of the car's price or replace the car if the customer made a significant payment.
This practice was deemed in violation of consumer rights.
The Australian Competition and Consumer Commission (ACCC) Deputy Chair Catriona Lowe claimed Mazda gave its customers the 'run-around' while providing 'appalling' service and engaging in evasions and deceit.
'If a vehicle cannot be repaired within a reasonable time, or at all, consumers have a right under the Australian Consumer Law to a refund or replacement, and we expect car manufacturers to honour those rights promptly and without misleading consumers,' Lowe said.
The court has ordered Mazda to pay $11.5 million in penalties after the manufacturer's appeal against a prior ruling was dismissed last year.
Moreover, Mazda was ordered to pay an additional $82,000 in compensation to some of the consumers, implement a consumer law compliance program, publish a corrective notice on its website, notify dealers of the court findings and pay part of the ACCC's costs.
Mazda has agreed to compensate affected parties and to pay a further $3000 per vehicle.
'Mazda is, and has always been committed to ensuring the best possible outcomes for its customers, having regard to their rights under the law,' they said.
'We are carefully reviewing the Court's decision with a view to determining our response.'
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