Mazda Australia back in court as consumer watchdog appeals finding

Australia’s peak consumer watchdog has announced it plans to take Mazda back to court in an ongoing dispute over the Japanese car giant's failure to meet its warranty obligations on cars with serious mechanical failures.

In 2019, the Australian Consumer and Competition Commission (ACCC) commenced legal action against Mazda, alleging a spate of transgressions including “unconscionable conduct.”  

According to the ACCC, at least nine Mazda customers reported being asked to pay for replacement engines that had failed, when the costly repairs should have been covered under warranty.

The ACCC said Mazda 2, Mazda 6, Mazda CX-5, Mazda CX-3 and Mazda BT-50 vehicles purchased between 2013 and 2017 were affected.

In November 2021, the Federal Court found Mazda had been “misleading and deceptive” in denying legitimate warranty claims – but dismissed the specific charge its behaviour was "unconscionable."

However, today, the ACCC announced its intention to appeal that decision – and continue its pursuit for a penalty though the legal system.

“The case involved seven vehicles with serious and recurring faults. Six of them had engine replacements, including one vehicle which had three engine replacements,” ACCC Commissioner Liza Carver said in media statement.

“The consumers requested a refund or replacement vehicle from Mazda on multiple occasions, but these requests were denied.

“Mazda … provided appalling customer service and failed to make any genuine attempt to consider and apply the consumer guarantee provisions of the Australian Consumer Law.

“We will argue that, based on the Court’s factual findings, Mazda’s conduct fell below the applicable norms of commercial behaviour and was in all the circumstances unconscionable.”

A spokesperson for Mazda Australia told Drive: "Mazda has also filed an appeal seeking to have various findings of misleading conduct made against it overturned. Mazda maintains that the trial judge was correct in finding that Mazda had not engaged in any unconscionable conduct."

The ACCC announcement comes less than 24 hours after the consumer watchdog announced it was pursuing Honda Australia for misleading customers about servicing arrangements.

Earlier this year Drive reported the automotive industry is responsible for more consumer complaints than any other sector in Australia.

The ACCC has been the driving force behind more than $135 million in fines against a number of car companies since 2015.

Among the successful actions by the ACCC: in April 2018, the Federal Court fined Ford $10 million in penalties for "unconscionable conduct" in relation to its complaints filing process.