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Australian watchdog launches investigation into car retail

Staff writer |
Australia's consumer watchdog, the Australian Competition and Consumer Commission (ACCC), will launch a study into the car retail industry, following a rise in complaints.

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ACCC Chairman Rod Sims said that agencies continued to receive a high volume of complaints from consumers about defects with vehicles from a range of manufacturers.

"These complaints reveal that many consumers are having difficulty enforcing their consumer guarantee rights, which are in addition to the warranties provided by manufacturers," Sims said.

"A new car is a significant purchase for consumers and more than 1 million new cars are sold in Australia each year."

Consumer group CHOICE welcomed the announcement.

"We particularly welcome the focus on misleading and deceptive conduct at the point of sale, including when it comes to claims about performance and fuel efficiency," Sarah Agar from CHOICE said.

"Fuel costs are consistently reported as one of the biggest cost-of-living concerns for Australian households."

A draft report by the ACCC is expected to be released in March 2017.

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