Mazda has been ordered to pay $11.5 million for misleading customers with faulty cars about their consumer guarantee rights.
The Federal Court found the manufacturer had made 49 separate false or misleading representations to nine customers over seven vehicles that experienced serious and recurring faults within two years of purchase.
Mazda was also found to have ignored or rejected requests by the customers for a refund or replacement car and instead told them the only remedy was a repair.
The cars had already gone through several unsuccessful repairs, including engine replacements. One car had its engine swapped out three times.
The manufacturer agreed to refund a portion of the car’s price or replace the car – but only if they had made a significant payment.
The Australian Competition and Consumer Commission (ACCC) Deputy Chair Catriona Lowe said Mazda gave its customers the “run-around” while providing “appalling” service and engaging in evasions and subterfuges.
“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,” she said.
The court has today ordered Mazda pay $11.5 million in penalties after the manufacturer’s appeal against a prior ruling was dismissed last year.
It was also ordered to pay an additional $82,000 in compensation to some of the consumers, implement an 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 pay compensation 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,” Mazda said.
“We are carefully reviewing the Court’s decision with a view to determining our response.”
The vehicles of concern were Mazda 2, 6, CX-5, CX-5B and BT-50 models purchased between 2013 and 2017.
(9 NEWS)
