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The Australian Competition and Consumer Commission (ACCC) has identified carmakers as a key focus for 2026, in a move that could see manufacturers face scrutiny for claims about cars' towing capacity, electric range, fuel consumption and/or off-road capabilities.
The consumer watchdog recently released its compliance and enforcement priorities for 2026-27, one of which was "improving industry compliance with consumer guarantees, with a focus on motor vehicles".
This will look beyond manufacturer warranties to cover any promise made to car owners about their vehicle – including that it be "of acceptable quality, fit for a particular purpose, and match the description, sample or demonstration model".
This could extend to guarantees made about a car's capabilities, including fuel consumption claims, electric range and off-road readiness.
"Consumer guarantee rights apply separately from any warranty provided by the supplier or manufacturer, and can last for a longer time than the manufacturer’s warranty. These rights also cannot be taken away by anything a business does or says," an ACCC spokesperson told Drive.
"Many consumers are well aware that they have rights when goods are faulty. However, the ability for consumers to enforce their rights under the consumer guarantees remains one of the main issues reported to the ACCC, particularly involving new motor vehicle licensed dealers and motor vehicle manufacturers."
In mid-2025, the ACCC instituted Federal Court proceedings against caravan company Jayco for allegedly making "misleading representations" about its RVs' off-road capabilities.
“We allege Jayco misled consumers by advertising the RVs in terrain in which they were not designed to be used and were not covered by its warranty,” ACCC Deputy Chair Mick Keogh said at the time.
“When a product is depicted in advertisements in a particular setting, or claims are made about it, consumers have a right to expect such images and words reflect the intended use of the product.”
Under this precedent, carmakers could also be challenged over claims they make in advertisements, brochures and specification sheets.
The ACCC hasn't revealed the specifics of how it will enforce these consumer guarantees, but Commission Chair Gina Cass Gottlieb said it would "work collaboratively with industry to deliver changes for the benefit of consumers".
“Purchasing a motor vehicle is one of the most significant purchases that many consumers will make, and when an issue arises with their vehicle that is covered by consumer guarantees, then businesses must meet their obligation to fulfil this basic consumer right," Ms Cass-Gottlieb said.
This is not the first time the ACCC has set its sights on the automotive industry. In February 2024, Mada Australia was fined $11.5 million after the ACCC initiated proceedings against the carmaker, claiming it made "false and misleading" statements to customers.
More recently, the ACCC announced in April 2025 that it would pursue legal action against carmaker LDV for allegedly misleading consumers about the durability of some of its vehicles.
Susannah Guthrie has been a journalist for over a decade, covering everything from world news to fashion, entertainment, health and now cars. Having previously worked across titles like The New Daily, Elle, Harper's Bazaar, People Magazine and Cosmopolitan, Susannah now relishes testing family cars with the help of her husband and three-year-old son.
