Mazda Australia has been ordered by the Federal Court to pay $11.5 million in penalties after being found guilty of misleading and deceptive conduct — specifically, of making false or misleading representations to consumers about their rights under the Australian Consumer Law (ACL) (accc.gov.au, AMI).
The case stems from dealings with nine customers across seven Mazda vehicles (including Mazda 2, 6, CX-5, CX-5B, CX-3, and BT-50) purchased between 2013 and 2017 (accc.gov.au, GoAuto). All of these vehicles suffered recurring and serious faults within two years of purchase. Despite multiple failed repair attempts — including one case where the engine was replaced three times — Mazda insisted repair was the only remedy available, rejecting requests for a full refund or replacement (accc.gov.au, thenewdaily.com.au, GoAuto).
The Court also required Mazda to pay approximately $82,000 in direct compensation to affected consumers, with Mazda voluntarily committing to provide an additional $3,000 per vehicle (accc.gov.au, AMI). Beyond financial penalties, the court mandated that Mazda implement an ACL compliance program, publish a corrective notice on its website, notify its dealers of the ruling, and contribute to the ACCC’s legal costs (accc.gov.au, CarExpert).
ACCC Deputy Chair Catriona Lowe sharply criticized Mazda’s handling of the situation, stating consumers were given the “run-around”, faced “appalling customer service”, and that Mazda “failed to make any genuine attempt to consider and apply” their statutory rights (AMI). She emphasized that under the ACL, if a vehicle cannot be repaired within a reasonable time, consumers are entitled to a refund or replacement, and carmakers must honour those rights promptly and without misleading consumers (AMI, thenewdaily.com.au).
This ruling serves as a stark reminder: even leading car brands must respect consumer guarantee rights or face significant legal and financial consequences.
