Have you sold a vehicle with the Takata Airbag? Be prepared!

The Australian Competition and Consumer Commission  is now investigating Motor Dealers who may not be complying with the Takata Airbag Recall process, following customer complaints and increasing awareness of the issue.

Your Dealership may be investigated if it has sold a vehicle with the defective Takata Airbag.

If your Dealership receives correspondence from the ACCC, it is important that you are prepared and able to respond to their requests within the timeframe stipulated.  To assist with this, you can also take steps now to be prepared to respond to any communication from the ACCC, eg:

  •  locate your Dealership’s relevant Takata Airbag recall policies, procedures and manufacturer bulletins so they are close to hand.
  • conduct an audit of your Dealership’s compliance with those Takata Airbag recall policies, procedures and manufacturer bulletins.
  • if you identify any non-compliances, consider what you can do – and how – to proactively rectify it.
  • consider what else you need to do in your Dealership to ensure that the Takata Airbag recall campaign remains front-of-mind (eg. staff refresher training).

Significant penalties can apply for failure to comply with the recall requirements, as well as other adverse consequences to your Dealership and senior staff.

The ACCC said in a media release late last year that 1.8 million potentially deadly airbags still needed replacing as part of a compulsory recall that will run until 2020.

Macpherson Kelley is currently assisting Dealers who are being contacted by the ACCC on this issue. Our significant experience in ACCC investigations, requisitions and information requests means we know the process and can support you through it.

If you need any assistance or have any further questions, please contact Paul Kirton, Kelly Dickson or Georgia Davies-Jackson.

This article was written by Jai Manoharan, Law Graduate.