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Posted: 2021-06-11 03:00:17
  • Australian consumers face “barriers” when trying to repair and maintain everyday products, a draft report from the Productivity Commission has found.
  • The report states limitations on who can fix or maintain consumer goods has ramifications for the implied ‘right to repair’.
  • Consumer advocates have praised the draft report, which recommends allowing “super complaints” before the Australian Competition & Consumer Commission, and major tweaks to warranties.
  • Visit Business Insider Australia’s homepage for more stories.

Consumer advocates have welcomed the Productivity Commission’s new draft report into Australia’s ‘right to repair’ protections, which found end users are often prevented from fixing or maintaining their products without turning to the original manufacturer for parts and assistance.

In its draft report, released Friday, the Productivity Commission states “there are barriers to repair for some products,” which can increase prices for consumers, weaken the market for third-party repairers and technicians, and shorten the life cycle of consumer goods.

Submissions received by the Productivity Commission argued that consumers are limited in how they can repair or maintain products like smart phones, tablets, motor vehicles, home appliances, and even farm equipment.

The draft report notes significant concerns around manufacturers “limiting third-parties from accessing the parts, tools, equipment and information they need to conduct repairs,” and restricting access to proprietary software and diagnostic tools needed to fix high-tech products.

Contractual agreements which see consumers void their warranty by seeking repairs outside of the original manufacturer’s ‘ecosystem’ also face scrutiny in the report.

While recognising that some end user protections already exist through Australian Consumer Law, the report notes “there is scope to reduce these barriers.”

Recommendations include the institution of a new “super complaints” system, which would see concerns brought forward by consumer advocacy groups fast-tracked through the Australian Competition & Consumer Commission (ACCC).

The report calls for an overhaul of warranty notices, with manufacturers urged to specify consumers are not “required to use the repairers or spare parts specified by the product’s manufacturer to access their rights to a guarantee under consumer law.”

In the same way that appliances in Australia are sold with clear energy consumption ratings, the report proposes the ACCC should “provide guidance” on the expected lifespan of consumer goods, to help users, repairers, and manufacturers understand when certain guarantees should apply.

The Productivity Commission is seeking further advice on other measures, like a ban on warranties which become void once third-party replacement parts are used; a scheme which would compel manufacturers to provide relevant software to repairers in a reasonable timeframe; and tweaks to the Copyright Act which would allow technicians to duplicate and share manuals and relevant code.

“The reforms proposed above go in the direction of enabling consumers to access repair services at a competitive price, without the uncertainty and costs associated with more significant regulatory intervention,” the report notes.

“Nevertheless, there would be merit in further assessment of the policy landscape in the coming years,” the Productivity Commission added, saying evidence for deeper policy tweaks could be gleaned three years after a motor vehicle “repair information sharing scheme” comes into place.

The draft report also notes hindering the right to repair may drive consumers to prematurely discard their products, adding to landfill and harming Australia’s broader hopes for a sustainable future.

The findings have been welcomed by consumer advocacy group CHOICE, whose senior campaigner, Dean Price, said the institution of a “super complaint” system is “long overdue”.

“Our consumer laws are clear – we have a right to a repair, refund or replacement within a reasonable period if a product fails,” Price said.

“However, some companies fight customers every step of the way when they try to enforce these rights. The Productivity Commission is right that consumers need more options to escalate complaints when a company doesn’t play fair.”

Further submissions to the Productivity Commission are due by July 23, with its final report to be presented to the Federal Government in October.

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