Recently, I was invited to participate in a webinar hosted by the Warranty Solutions Group to discuss the Consumer Rights Act 2015 and its relevance to the current state of the retail motor industry, writes Prof Jim Saker, president of the Institute of the Motor Industry.
Historically, advances in technology have tended to shift the balance of power within commercial transactions. A good example of this is the Consumer Contracts Regulations (2013), which were introduced to provide greater protection for consumers purchasing goods or services online, by telephone or through mail order.
These regulations introduced a 14-day cooling-off period. This was a logical development, as consumers entering distance contracts have not had the opportunity to inspect the goods before purchase.
A significant question is now emerging within the motor industry: has the Consumer Rights Act tipped the balance too far in favour of consumers when it comes to resolving faults in today’s highly sophisticated, software-driven and connected vehicles?
Vehicles are increasingly software defined
For more than a century, the motor industry developed an extensive body of technical knowledge based on largely mechanical systems. Experienced technicians were often able to identify and rectify faults quickly, drawing on years of practical experience and familiarity with established technologies.
Today’s vehicles, however, are increasingly defined by software, electronic control systems and cloud-based connectivity. At the same time, the market has seen the arrival of numerous new manufacturers, many introducing proprietary technologies that have yet to develop the same depth of industry knowledge and diagnostic experience.
Diagnosing the root cause of a problem
In modern vehicles diagnosing the root cause of a problem is considerably more complex than replacing a defective part, raising important questions about how the remedies available under the Consumer Rights Act should be applied in an increasingly digital automotive environment.
Under the current Act, where a consumer exercises the short-term right to reject or seeks a repair, the legislation generally affords the retailer one opportunity to repair or replace the vehicle before the consumer may become entitled to exercise the final right to reject or seek a price reduction if the repair is unsuccessful.
While this framework is understandable in principle, its application lacks an understanding of modern vehicle technology.
This is particularly true where the fault is intermittent, occurring only under highly specific operating conditions that are difficult to reproduce in a workshop environment.
The potential of AI to support diagnostics
Although artificial intelligence (AI) has the potential to support vehicle diagnostics, it is not a complete solution. AI systems are only as reliable as the data on which they are trained, and technicians must still distinguish between accurate diagnostic guidance and misleading or incomplete information. Human expertise and engineering judgement therefore remain essential.
The Consumer Rights Act 2015 undoubtedly needs to be refined and applied in a way that reflects the realities of today’s technology-driven vehicles. However, this must be accompanied by a corresponding commitment from vehicle manufacturers, particularly new market entrants, to invest in aftersales support, technical training and diagnostic capability that is commensurate with their growth ambitions and market share.
Author: Prof Jim Saker, president, Institute of the Motor Industry
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