Competition Commission's guidelines aimed at motor plan changes

The Competition Commission has gazetted draft guidelines that aim to change anti-competitive service and warranty plans in South Africa. Courtesy #DStv403

JOHANNESBURG - Tired of absurdly pricey car repairs and a lack of choice on where to service your vehicle?

Well, the Competition Commission is a step closer to changing that.

It’s gazetted draft guidelines that aim to change anti-competitive service and warranty plans in South Africa.

Currently, most new car owners are locked into using a vehicle manufacturer’s service centre, repair shop and parts in motor and service plans.

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The guidelines want consumers to no longer be compelled to conduct in-warranty service, maintenance or repair work only at approved dealers or service providers.

Competition Commissioner Tembinkosi Bonakele said they looked at how markets work in Europe, the United States of America and other developing countries.

"A consumer makes a choice. If you want to fit a part in your car or you want a service provider, you make that choice yourself.

"As long as it is very transparent of what the consequences are of that choice," said Bonakele.

Source
eNCA