Right to repair

• This report finds that there are barriers to repair for some products and that there is scope to reduce these barriers. The proposed reforms would improve consumers’ right to repair, without the uncertainty and costs associated with more forceful policy interventions.
• A ‘right to repair’ is the ability of consumers to have their products repaired at a competitive price using a repairer of their choice. Realising this aspiration in a practical way involves a range of policies, including consumer and competition law, intellectual property protections, product design and labelling standards, and environmental and resource management.
• Consumers already have considerable rights to have their products repaired, replaced or refunded under guarantees in Australian Consumer Law. These guarantees are comprehensive and generally work well, but they could be improved by:
  • the Australian Competition and Consumer Commission (ACCC) providing guidance on the reasonable period of product durability for common household products, so that consumers and manufacturers can better understand when consumer guarantees apply
  • providing regulators with alternative dispute resolution processes to assist consumers to resolve their claims, and enabling designated consumer groups to lodge ‘super complaints’ about consumer guarantees, with these fast tracked by the ACCC
  • the inclusion of text in manufacturer warranties that prominently states that consumers are not required to use the repairers or spare parts specified by the product’s manufacturer to access their rights to a guarantee under consumer law.
• The Commission is seeking further evidence on other reforms that could help consumers obtain repairs and make more informed purchase choices. These potential reforms involve:
  • requiring manufacturers to provide software updates for a reasonable period
  • amending copyright laws to enable third‑party repairers to copy and share repair manuals, and access repair data hidden behind digital locks
  • prohibiting manufacturer warranties from being voided if consumers do not use the repairers and spare parts specified by the manufacturer
  • developing a product durability or repairability labelling scheme to help consumers identify products that best meet their needs.
• There is also scope to improve the way products are managed when they become ‘e-waste’ by amending regulated product stewardship schemes to remove current incentives that focus solely on product recycling, rather than repair and reuse. Global positioning system (GPS) trackers should also be used to improve monitoring of e-waste.
• The Commission is seeking evidence on the net benefits of a more extensive right to repair policy through a ‘positive obligation’ that would require manufacturers to provide third‑party access to repair information and supplies.
  • The Commission’s preliminary analysis suggests that restrictions on third‑party repair supplies could be harming consumers in repair markets for agricultural machinery and mobile phones and tablets. However, the evidence base on the magnitude of repair barriers in these markets is patchy and largely anecdotal, preventing a rigorous assessment of whether additional policies would provide net benefits to the community.
  • At a minimum, a review of the policy landscape in the coming years would be warranted, supported by an evaluation of the proposed mandatory scheme for the sharing of motor vehicle service and repair information, once it has been in operation for at least three years.

Making everyday products easy to repair

There is growing community concern that repairing everyday products is getting harder, with higher costs for consumers.

A draft report by the Productivity Commission on a ‘right to repair’ outlines some measures governments could take to assist consumers to get their products repaired.

“In general, consumer protections work well in Australia, but we are proposing some practical steps that could make it easier for consumers to get goods repaired and enforce the consumer guarantees,” Commissioner Paul Lindwall said.

The report found that many independent repairers find it difficult to access the spare parts, tools and information they need to repair products.

“There appear to be particular problems in markets for agricultural machinery, mobile phones and tablets, and we are seeking further information on this,” Commissioner Julie Abramson said.

One proposal canvassed in the report is to require that manufacturers provide independent repairers and consumers with access to repair information, tools and/or spare parts.

An additional proposal is to change copyright law to allow independent repairers to legally access and share repair supplies such as manuals and software diagnostics.

Although consumers already have considerable rights to have their products repaired, refunded or replaced under consumer guarantees, it can be very difficult for them to exercise these rights. “We are proposing that consumer groups be able to lodge super complaints about the guarantees, with these being fast tracked by the ACCC. We also recommend further powers be given to regulators to help consumers resolve their complaints with manufacturers or suppliers,” Commissioner Julie Abramson said.

Consumers should also have a clearer idea of the expected life of their product so they know when they can exercise their rights. The report proposes that guidance be developed by the ACCC in consultation with industry and consumer groups on the life expectancy of common household products.

It also proposes requiring manufacturer warranties to clearly state that if consumers use independent repairers, they will not lose their legal rights to the consumer guarantees, even if the manufacturer ‘voids’ the warranty due to independent repair.

“Not being able to easily repair products can lead to them being discarded as e-waste rather than being reused,” Commissioner Lindwall said.

Australia’s e-waste is small as a share of total waste, but it is growing relatively quickly and could be better managed. This could be done by amending regulated product stewardship schemes to allow discarded products to be repaired and reused, rather than just recycled. Use of GPS trackers would also allow Australia’s e-waste to be better monitored.

People can make comments or submissions on the right to repair inquiry at www.pc.gov.au . The final report is due to Government in October.