Major Car Dealers Amend Warranty Terms that Restrict Competition for Car Servicing and Repairs
The Competition Commission of Singapore (“CCS”) has concluded its inquiry into the supply of car parts in Singapore. The inquiry aimed to better understand how the car parts market in Singapore works and the effects of market features on competition.
In the course of the market inquiry, CCS raised concerns with the major authorised car dealers with regard to any of their warranty terms that in effect requires the customers to service or repair their cars at the dealers’ authorised workshops in order to ensure that the warranty remains valid.
All the major car dealers have agreed to make the relevant changes to the warranty terms identified by CCS. CCS expects all agreed changes to the warranty terms for existing warranties in force and new warranties to be retrospectively implemented by 31 December 2017. With the changes, these car dealers may void car warranties or reject claims only if they establish that the damage or defect to be claimed under the warranty is in fact caused by the independent workshops.