# New ‘rule changes’ South African drivers should know about

- Link: https://dearsouthafrica.co.za/2020/03/09/new-rule-changes-south-african-drivers-should-know-about/
- Published: 2020-03-09T11:02:52+02:00
- Author: dearSA

![](https://cdn.dearsouthafrica.co.za/wp-content/uploads/2020/03/20191133/Screenshot-
2020-03-09T110103.779.png "Screenshot - 2020-03-09T110103.779")

The Competition Commission has published Draft Guidelines for the Automotive Aftermarket
Industry.

The automotive aftermarket industry is the market for motor vehicle spare parts,
tools and components after the vehicles are sold to consumers. This market also 
includes maintenance and repair services sold by dealerships to consumers.

Currently, most new vehicle owners in South Africa are locked into using a vehicle
manufacturer’s service centres, repair shops and parts in ‘embedded’ motor and service
plans.

If these owners decide to use an independent service or repair provider of their
own choice, vehicle manufacturers punish them by voiding their warranties.

This has also locked out independent workshops and service centres, thereby limiting
small-to-medium-sized enterprises’ abilities to transform and grow the sector.

“The guidelines have been labelled as controversial by some bodies, with some claiming
that the guidelines could have serious negative consequences for consumers and the
country’s road safety initiatives,” said law firm Cliffe Dekker Hofmeyr.

“Whilst the guidelines are not binding, they seem to stipulate a set of ‘rules’ 
that will apply to Original Equipment Manufacturers (OEMs), service providers (i.
e. those who service and maintain motor vehicles); dealers; insurers; and independent
service providers or ISPs (i.e. those service providers not appointed by an insurer
or OEM).”

Below Cliffe Dekker Hofmeyr outlined the biggest changes and what it means for motorists.

**Your choice of mechanic**

The guidelines aim to create choices for consumers when selecting a service provider
to carry out in-warranty services and repairs.

In terms of the guidelines, manufacturers and insurers must approve any service 
provider who meets required standards and specifications.

Further, the approved dealers and service providers must not be prohibited from 
carrying out work for other manufacturers/insurers.

Manufacturers must also inform customers that they can conduct in-warranty services
at service providers, but the manufacturers are not obligated to pay for in-warranty
services at these ISPs.

---

**Your choice of spare parts**

In respect of spare parts (i.e. replacement parts for worn, defective or damaged
components of a motor vehicle), manufacturers and dealers must allow customers to
fit spare parts which are not manufactured by the OEM (so called “non-original spare
parts”) in instances where the warranty on that specific part has expired.

In such situations, the use of non-original spare parts may not void the warranty
on other parts in the vehicle which are still under warranty.

Manufacturers and dealers must also make original spare parts available to other
service providers (unless those items are related to the vehicle’s security systems)
and manufacturers cannot restrict the ability of providers to resell spare parts.

---

**No more bundling**

The guidelines also restrict the “bundling” of value-added products (such as maintenance
plans, service plans and extended warranties) with the sale of new motor vehicles.

This means that when purchasing a new motor vehicle, a consumer can opt not to take
out a maintenance plan or can opt to purchase any maintenance plan or value-added
products from another service provider, without voiding the warranty on the vehicle.

Consumers must also be allowed to select the duration of a value-added product and
must be free to purchase such products at any time after the purchase of a motor
vehicle.

---

**Costs can’t be separated **

The guidelines also state that dealers will be required to set out separately the
costs of the motor vehicle from the cost of each separate value-added product as
well as the information regarding the service and maintenance for that motor vehicle.

In addition, the dealers must disclose their sales commissions with the manufacturers
and other third parties.

These provisions will require dealers to ensure that all the necessary information
is disclosed to the consumer.

[Article](https://businesstech.co.za/news/motoring/379665/new-rule-changes-south-african-drivers-should-know-about/)
by BusinessTech