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ANCAP Media Release.

Safety must be considered as part of ACCC study into new car retailing

17 October 2016

Safety must be considered as part of ACCC study into new car retailing

Leading independent vehicle safety advocate, the Australasian New Car Assessment Program (ANCAP) is calling on the Australian Competition and Consumer Commission (ACCC) to broaden the scope of its market study into the new car retailing industry to include safety rating information.

“It is unfortunate the issues paper released by the ACCC fails to recognise the importance of safety rating information as a key element in the new car buying process,” said Mr James Goodwin, ANCAP Chief Executive Officer.

“This study is an important step in understanding consumer needs in a changing and competitive marketplace but information about vehicle safety ratings and how safety is presented in showrooms and advertising should be a focus area.”

“A recent survey showed nine in ten new vehicle buyers believe ANCAP safety ratings should be displayed on all new cars,” he said.^

“Consumers invest significant amounts of money in a new car purchase so it is important to ensure safety information is correctly marketed and no competitive advantage is gained from brands or dealers through the misuse of vehicle safety ratings,” Mr Goodwin said.

The ACCC market study will review industry practices in the sector to assist in identifying risks to consumers and the competitive process as well as explore purchasing behaviours and new car buyer expectations.

The ACCC issues paper is available at: New car retailing industry market study.

^ 2016 Brand Tracking Analysis, 87% of respondents.

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