MC penalizes 10 auto dealerships for infringement of laws and regulations

10 Jun 2023


The Ministry of Commerce has imposed financial fines on 10 car dealerships located in different regions of the country. These dealerships were found to be in violation of the Commercial Agencies Law, its executive regulations, and provisions related to maintenance services, provision of spare parts, and ensuring the quality of the products. Additionally, they were found to be non-compliant in providing after-sales services to consumers.

One of the violations involved a German car dealership that failed to provide a specialized technical spare part within 14 days of the consumer's request.

Another violation involved two American car dealerships, with one of them being penalized for delaying the repair of a consumer's vehicle and failing to provide the required spare part in the local market.

The second violation involved one of the agencies that failed to disclose any defects in the sold car to the consumer at the time of purchase.

Furthermore, the Ministry imposed fines on three Japanese car agencies. The first agency was fined for the delay in providing a requested spare part to the consumer within the specified period of 14 days.

The second Japanese agency faced penalties for the delay in carrying out maintenance work and for not providing a replacement vehicle to the consumer or offering financial compensation for the period during which the consumer was unable to use the vehicle.

The third agency made mistakes in diagnosing the vehicle's issue by not conducting a proper examination for a consumer's car.

The Ministry also imposed fines on four Chinese car dealerships. The first dealership was fined due to the delay in delivering the consumer's new car (2023) beyond the agreed-upon date.

The other three dealerships committed violations by not complying with the requirement to provide rare requested spare parts within 14 days from the date of the consumer's request.

The Commercial Agencies Law and its executive regulations require agents to consistently provide consumable spare parts and supply rare requested parts within a maximum period of 14 days from the date of the request. For parts that need to be manufactured or have specific technical specifications, an agreement is reached between the agent and the consumer regarding their provision within a reasonable timeframe.

Furthermore, the law emphasizes the importance of agents implementing a standardized procedural mechanism for selling goods and fulfilling their obligations towards the consumer. This mechanism should include a clear statement of the delivery date of the goods and the agent's responsibilities in case of any delays. Both the agent and the consumer should acknowledge these terms in writing, ensuring clarity and a shared understanding.

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Last Modified 18 Jun 2023