ACCC looking into issues within agricultural machinery markets

Public news

The Australian Competition and Consumer Commission (ACCC) began examining issues in agricultural machinery markets following the Australian Consumer Law (ACL) Review in April 2018, and observations of a debate occurring in the United States relating to the repair of agricultural machinery.

Stakeholders expressed concern to the ACCC that agricultural machinery is frequently not covered by Australian Consumer Law (ACL) guarantees, as it often costs more than the $40,000 threshold for consumer goods.

Concerns about manufacturer warranties and the servicing and repair of agricultural machinery are the focus of the ACCC's discussion paper.

You can access the ACCC's discussion paper by clicking here.

While it appears that the ACCC believes manufacturers should take more responsibility, it is integral to hear your views on reforms that may also affect second-hand farm machinery sales or incorporate farm machinery above the $40,000 into ACL.

The ACCC's discussion paper identified a number of initial concerns about issues which they believe may be harmful to competition and to purchasers of agricultural machinery, specifically that:

  • access to independent agricultural machinery repairs is limited
  • farmers may lack recourse in the event of a problem with their machinery
  • agreements between manufacturers and dealers may limit access to repairs
  • data ownership and management issues may raise privacy and competition concerns

The MTA will be making a submission in response to the discussion paper to the ACCC on behalf of Farm and Industrial Machinery Dealers Association (FIMDA) SA members.

Submissions are due by Sunday, 5 April and we ask that you communicate any feedback in relation to the ACCC's discussion paper by Friday, 20 March to our Industry and Government Engagement Specialist, Kaes Cillessen by clicking here.