Have a say on ‘lemon laws’

MEMBERS of the public can join motor industry stakeholders in having a say on proposed new “lemon laws”.
Consumer Affairs Minister Tony Robinson invited submissions in the lead-up to the introduction of new Victorian Motor Vehicle Lemon Laws. He said that an issues paper was a crucial step in delivering the Government’s commitment to new lemon laws to protect Victorian car buyers.
“We are starting with motor vehicles because they are often the second biggest purchase Victorians make, after their home,” he said. A lemon is a vehicle that, for one reason or another, needs constant repair and causes angst for the consumer.
Public forums are planned across Melbourne and regional Victoria over the next few months..
In Australia all new cars come with a manufacturer’s warranty, typically for three years or 100,000, whichever occurs first.
The Fair Trading Act requires that cars will be reasonably fit for their common or specified purposes and will correspond to their description or sample.
“Unfortunately though, some consumers are not able to obtain adequate compensation when the car they purchase is a lemon,” Mr Robinson said.
Part of the Government’s plan is to set out more clearly the rights and responsibilities of the purchaser, the dealer and the manufacturer/importer, introduce a new system of addressing problems and encourage a quick resolution of disputes.
But the initiative has not been welcomed by the industry with the Victorian Automobile Chamber of Commerce (VACC) claiming new lemon laws are not necessary.
“There is no evidence that the market is failing to adequately protect car buyers from unsafe, or unmerchantable, products,” VACC executive director David Purchase said. “Quality of new cars sold in Australia is at a very high standard in a most competitive market.”
He said there was already adequate protection for consumers and the provision for resolution of disputes in the Fair Trading Act in Victoria and the Trade Practices Act.
Mr Purchase said VACC would review the issues paper and make a submission.
Submissions to Lemon Laws Consultation, Consumer Policy Branch, Consumer Affairs Victoria, GPO Box 123A, Melbourne, Victoria 3001 must be in by Friday 23 November 2007.