The Motor Trades Association of Australia (MTAA) has welcomed the Australian Government's consultation on extending unfair trading practices protections to small businesses, describing it as an important step toward fairer commercial settings for the thousands of automotive businesses facing significant power imbalances in their dealings with larger counterparts.
Treasury's consultation paper, released today, seeks feedback on whether the proposed general prohibition on unfair trading practices should be extended to protect small businesses, and whether additional protections are needed for business-to-business dealings.
MTAA Interim Executive Director Peter Jones said the consultation directly addresses issues the automotive sector has been raising for years.
"Automotive small businesses regularly face unfair conduct in their dealings with larger businesses, whether that is insurers dictating unfair repair terms, suppliers imposing unilateral contract changes, or franchisors exercising superior bargaining power," Mr Jones said.
"These are not isolated incidents. They are systemic issues where a small number of large players hold significant power over thousands of small, family-owned businesses."
"For years, MTAA has been documenting the ways in which power imbalances between large corporations and small automotive businesses result in unfair outcomes. This consultation recognises that the existing legal framework has gaps, and we welcome the opportunity to provide further evidence."
Mr Jones said the automotive sector provides a clear case study for the types of harm the consultation is seeking to address,including threats of commercial retaliation, interference with rights andremedies, withholding of payments, unilateral changes to agreements, and unfair pressure placed on businesses that rely on a small number of major commercial relationships.
"Our members have told us about insurers refusing to pay fair repair rates, suppliers imposing unreasonable commercial conditions, manufacturers threatening to terminate dealer agreements when concerns are raised, and businesses being pressured to accept contract changes that leave them worse off," Mr Jones said.
"Many small businesses simply absorb these losses because they cannot afford to take legal action or risk losing the commercial relationship they depend on."
MTAA said the consultation is relevant to a broad cross-section of the automotive industry, including repairers, service providers, parts suppliers, dealerships and other automotive businesses that are often required to negotiate with significantly larger commercial entities.
MTAA supports extending the proposed general prohibition to small businesses acquiring goods or services as consumers and will advocate for strong protections in business-to-business dealings where bargaining power imbalances exist.
The association will lodge a submission to the consultation drawing on evidence from across its membership.
ENDS
Media contact
Andrew Molloy
Manager Marketing & Communications
Victorian Automotive Chamber of Commerce
P: 03 9829 1248 | M: 0457 188 375
E: amolloy@vacc.com.au
