Australia's fair trading watchdog is taking Honda to court over allegations it misled motorists to believe that a Sutherland-based dealership Tynan Motors had closed.
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The Australian Competition and Consumer Commission has initiated legal action in the Federal Court against Honda for allegedly making false and misleading representations about Tynan Motors - which also operates in the Illawarra - as well as another dealership in Victoria.
The ACCC alleges that between January 2021 and June 2021, Honda Australia told Tynan customers that the dealership would close or had closed and would no longer service Honda vehicles.
This came after a franchise agreement with Tynan Motors was terminated due to a Honda restructure.
Customers were allegedly told via text messages, emails and phone calls to instead go to a Honda Service Centre or Honda dealership.
But Tynan Motors had not closed and continued to service Honda vehicles as an independent dealership.
"We allege Honda deprived customers of the opportunity to make an informed choice about options for servicing their car in favour of a Honda-linked dealership which may have been less convenient or more costly for them," ACCC Commissioner Liza Carver said.
"We also allege Honda caused harm to the Astoria [the Victorian dealership] and Tynan businesses, by falsely claiming they had closed or would close, which may have led customers to have their Honda vehicles serviced elsewhere."
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Honda Australia provided the Mercury with a statement.
"Honda Australia has cooperated with the ACCC's investigation into this matter. We are reviewing the recent filing by the ACCC and at this stage are unable to comment further on specific circumstances or details regarding the claims made or individual dealers," the company said.
The ACCC is seeking declarations, pecuniary penalties and costs.
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Natalie Croxon
Reporter at the Illawarra Mercury, mostly covering social affairs. Previously of the Bendigo Advertiser, Northern Daily Leader and Quirindi Advocate. Our Watch award winner.
Reporter at the Illawarra Mercury, mostly covering social affairs. Previously of the Bendigo Advertiser, Northern Daily Leader and Quirindi Advocate. Our Watch award winner.
