Australian competition watchdog sues Honda unit for false dealership closure claims

div classBodysc17zpet90 cdBBJodivpReuters – Australia‘s competition watchdog on Wednesday took Honda Motor Co’s local unit to court alleging the Japanese carmaker falsely claimed to its customers that two of its dealerships had stopped servicing Honda vehicles. p

pBetween January and June last year, Honda Australia told customers of Brighton Automotive Astoria in Victoria and Tynan Motors in New South Wales that the dealerships would no longer service Honda vehicles, the Australian Competition & Consumer Commission ACCC alleged https:www.accc.gov.aumediareleasehondaincourtforallegedlymisleadingconsumersaboutdealershipclosures.pdivdivdiv classBodysc17zpet90 cdBBJodiv

p“The ACCC alleges that in emails, text messages and phone conversations, Honda informed Astoria and Tynan customers that these businesses had closed and directed customers to contact a Honda dealership or Honda Service Centre to book their next service,” the watchdog said.p

pBut the dealerships continued to service vehicles, including Honda cars and operate independently after ending agreements with Honda Australia in January 2021 following a restructuring of the carmakers unit in May 2019, the ACCC said.p

pThe regulator accused Honda Australia of causing “harm” to the business of Astoria and Tynan by falsely claiming they had closed or would close, resulting in lower customer footfall, and sought penalty against it in the court.p

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pp Reporting by Sameer Manekar in Bengaluru Editing by Arun Koyyurp

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