Consumer Focus is calling on independent garages to sign up to a code of practice aimed at protecting consumers, to avert a super complaint going to the Office of Fair Trading.

Consumer Focus Chief Executive Ed Mayo today wrote to the heads of independent garage chains urging them to sign-up to the code, as it emerged less than four percent (less than 200) of the 5,000 garages that have already subscribed are from the independent sector. 

It is estimated that around half of all work on cars in the UK is carried out by independent garages.  The code followed mystery shopper research showing that half of all garages offered a poor standard of service, estimated to cost consumers a staggering £4 billion a year, or nearly £11 million every day.  Shoddy workmanship on a vehicle also carries obvious risks to public safety. 

A super complaint can be made to the OFT when it’s considered that there is any market feature, or combination of features, such as the structure of a market or the conduct of those operating within it, that appears to be significantly harming the interests of consumers.

Consumer Focus Chief Executive Ed Mayo said:

“So far, some 5,000 garages have subscribed to the code, which is a promising start, however less than 200 are independents.  Independent garages are lagging behind, which is deeply concerning given they account for around half of annual car servicing work. 

“With money tight, it’s all the more urgent to end overcharging on the garage forecourt as people hold on to their cars for longer, meaning more car servicing.

“We can see the benefits of self-regulation, but the industry must meet its side of the bargain.  If the independents don’t sign up, this leaves little option but to introduce a mandatory licensing system.

“It’s in garages’ best interest to sign up, as carrying the motor codes logo tells potential customers that this business takes their consumer protection responsibilities seriously.”

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Notes to editors

1.       The Motor Industry Service and Repair Code completed Stage One of the Office of Fair Trading’s consumer codes approval scheme in September.  Information for consumers is available from the code website:  www.motorindustrycodes.co.uk

2.       The code followed campaigning by Consumer Focus’s predecessor organisation, the National Consumer Council (NCC), which highlighted that over half of garages – franchised dealerships and independents alike – offered poor standards of service to consumers, costing the economy £4 billion each year.  Problems included shoddy workmanship, unnecessary work, overcharging, charging for work that hadn’t been done and poor customer service.  The NCC said it would issue a super complaint unless the car servicing and repair sector achieved OFT code approval.

3.       When it receives a super complaint, OFT considers the evidence submitted and undertakes whatever work is necessary to establish the extent, if any, of the alleged problems. The OFT must then publish a response within 90 days from the day after which the super-complaint was received stating what action, if any, it proposes to take in response to the complaint and giving the reasons behind its decision.

Letter From Ed Mayo to the Chief Executives of independent garage chains

As you may know, Consumer Focus’s predecessor organisation, the National Consumer Council, actively campaigned for improved standards in the garage servicing sector. Its report, At a crossroads, highlighted the fact that over half of garages – franchised dealerships and independents alike – offer poor standards of service to consumers, at an estimated  annual cost to the economy of £4 billion. NCC threatened to issue a super-complaint unless the sector signed up to a code of practice backed by the Office of Fair Trading.

We are pleased that industry leaders from all parts of the sector responded to this call for action by developing the Motor Industry Service and Repair Code, which has completed Stage One of the OFT’s consumer codes approval scheme and had its public launch in September. So far, approximately 5,000 garages have subscribed to the code.  While this represents an encouraging start, it is deeply concerning that less than two hundred of this total is from the independent sector.

As the chief executive of a major group of independents, I strongly urge you to commit businesses in your chain to subscribe to the code. The code offers independent garages a cost-effective way of demonstrating to existing and potential customers that they take their consumer protection responsibilities seriously. It contains a series of simple promises that all responsible garages should have no difficulty meeting.  As public awareness of the code spreads, we are confident that consumers will learn to choose a garage carrying the Motor Codes logo over local rivals - giving them a genuine competitive advantage.

It would be a real pity if hard-won progress to raise standards for consumers is undermined because far fewer independent garages fail to match the commitment shown by a large number of franchised dealers. Consumer Focus recognises the advantages self-regulation can offer in this sector, but we will not hesitate to call for a mandatory licensing scheme using our super-complaint powers if necessary, to secure effective protection for consumers.

Garages can register online, either individually or through a bulk application at www.motorindustrycodes.co.uk . In the interests of consumers and your business, I encourage you to do so without delay.

Yours sincerely

Ed Mayo

Chief Executive