Sour outlook for lemon cars

In the face of recent well-publicised and sometimes dramatically-illustrated consumer dissatisfaction with consumer-protection laws, the Queensland government is set to shake out the current rules and examine them for faults and inadequacies.

An inquiry by Queensland's Legislative Assembly's Legal Affairs and Community Safety Committee will examine current "consumer protections and remedies for buyers of new motor vehicles with numerous, severe defects that reoccur despite multiple repair attempts or where defects have caused a new motor vehicle to be out of service for a prolonged period of time" to determine whether or not they need revisiting.

Under the guidelines, the committee will look at consumer experiences in Queensland, including financial and other impacts brought about by "lemon" cars, the effectiveness of current legislation as contained in Australian Consumer Law and state-based legislation, and how these might be improved for better consumer protection.

The committee will also investigate "any legislative and other protections in other jurisdictions assisting consumers who have purchased 'lemons', including the costs and benefits of existing and proposed protections."

The inquiry follows Queensland consumer action that has become so heated that in one instance a car was destroyed and burnt by its unhappy owner following an extended online campaign. Another owner has been driving around in a car festooned with "lemon" text and artwork, bringing attention to ongoing unsatisfactory experiences.

Putting weight behind the inquiry is Queensland's Attorney-General Yvette D'Ath advocating for national "lemon" laws, similar to those in place in the United States, by gathering evidence to put before a Federal Government Law review that is due next year (2016).

In an interview on ABC radio in Brisbane recently, Ms D'Ath said "Some of the comments we have already seen [involve] people feeling like they actually can't put their own children into their vehicles because they believe it's so unsafe."

Although Australia adopted a new Australian Consumer Law, developed by the States and the Australian Competition and Consumer Commission (ACCC) in January 2011 and specifically targeted at "lemon" cars, it appears there are inadequacies that have left buyers without full protection.

In fact NSW's National Roads and Motorists Association (NRMA), in a recent examination of current rules, found that "NSW motorists enjoy no replacement or refund guarantees under state regulations."

This could be related to the clearly unrealistic overview by industry advocates that no vehicle has been replaced or a refund given under the 2011 Australian Consumer Law since it was implemented. That there is a dark side to that observation is not often mentioned.

While the ACCC is currently investigating car-maker conduct in addressing guarantee obligations, the slightly hazy definition of what constitutes a "lemon" is prompting the respected Consumer Action Law Centre to step into the fray by proposing a law that defines a "lemon" as a car that has been "repaired at least three times by the manufacturer or importer and the vehicle still has a defect or if the vehicle is out of service for 20 or more days in total due to a defect."

In a comment to News Corporation in May 2015, the federal minister responsible for consumer affairs, Bruce Billson, said of the existing law: "If you buy a motor vehicle and it has a major failure, you have the right to choose between a refund or a replacement product. While not called a 'lemon law', consumer guarantees can provide similar redress."

The results of the state government committee's inquiry are due to be tabled before the Queensland Parliament by November 30 this year. The committee is seeking written submissions from the public and identified stakeholders that must be e-mailed to lacsc@parliament.qld.gov.au by no later than October 8.

The committee will hear from invited witnesses at public hearings in Mount Isa on August 31, Weipa on September 1, Cairns on September 3, 2015 and Brisbane on an as-yet unspecified date in October.

Queries can be answered by calling the committee secretariat on (07) 3553 6641, while further information is available from the committee's website.