On 12 March 2021, the Government announced a suite of reforms to the automotive franchising sector, and a commitment to consult on further potential automotive franchising reforms to:
- ensure appropriate protections for automotive dealerships from unfair contract terms in their agreements with manufacturers;
- consider the merits of a standalone automotive franchising code; and
- consider options to achieve mandatory binding arbitration for automotive franchisees.
This discussion paper seeks stakeholder views on the merits of a standalone automotive franchising code and options to achieve mandatory binding arbitration. The paper also seeks evidence to support expanding protections for new vehicle dealerships to other parts of the automotive sector. The Government will soon release exposure draft legislation on reforms to unfair contract term protections for consultation.