Despite the amended Guidelines being visually quite different to those published in July 2021, there are few amendments of substance.
The most important amendments to take note of can be summarised as follows:
Accessories
Accessories are now expressly included in the Guidelines and are treated in the same way as Spare-Parts. This means that you can now fit any matching quality accessories to your vehicle without compromising your warranty.
Extended Warranties
Extended warranties are now expressly included in the Guidelines and are treated in the same way as factory warranties, whether you purchase the Extended Warranty from an OEM or an insurance company. This means you can make use of an ISP for your servicing and repairs during the Extended Warranty period in the same way that you are permitted to do so during the factory warranty period.
Appointment of Motor Body Repairers by Insurers and OEMs
Sections 6 and 7 have been amended to allow insurers and OEMs to choose motor body repairers on a case-by-case basis, however they are still required to cater for entry of HDIs to participate and not limit their decision whether to approve a Motor-body Repairer to prevailing market conditions or low volumes of work in the Designated Geographic Area concerned. Previously they were required to accept all motor-body repairers who fulfilled their requirements.
Bundled Sale of Value-Added Products: Demo and Second-Hand Vehicles
Section 11 has been extended to include demo and second-hand vehicles. OEMs/dealerships are now obliged to separate the sale of all vehicles from the value-added products on offer, including demo and/or second-hand vehicles. Previously this was limited to new vehicles.
Part Numbers
Part numbers on quotations and invoices has been added as an item on the list of technical information that OEMs must make available to ISPs under Section 12.
The following is a full list of all amendments made:
Definitions:
Page 3
New definition added:
2.2 “Accessories” means parts or fittings attached to or carried by a motor vehicle for purposes of enhancing or altering its comfort, appearance, function or performance, as defined in the OEM terms and conditions. Accessories may include (but not limited to) spoilers, fenders, grills, carpets, and alloy wheels.
Page 4
Section 2.4 has been substituted with a new definition as follows:
Old:
2.4. “Commercially Sensitive Information” means trade, business, industrial information and data stored electronically or in the cloud that has economic value to a firm and its business strategy and that is generally not available to or known by others.
New
2.5. “Competitively Sensitive Information_” _means information that is important to rivalry between competing Firms and likely to have an appreciable impact on one or more of the parameters of competition (for example price, output, product quality, product variety or innovation). Competitively sensitive information could include prices, customer lists, production costs, quantities, turnovers, sales, capacities, qualities, marketing plans, risks, investments, technologies, research and development programmes and their results.
Section 2.9 has been substituted with a new definition as follows:
Old:
2.9 “Extended Warranty” is an optional and additional Warranty that a consumer can purchase to extend the application of a Warranty.
New:
2.10. “Extended Warranty” is an optional and additional Warranty that a consumer can purchase, from either an OEM, or an Insurer or any other service provider offering the product, to extend the application of a Warranty within the provisions of the original warranty contract or as a new product contract.
Section 2.12 has been substituted with a new definition as follows:
Old:
2.12. “Information Barriers” means measures within an organization that are created to prevent exchanges of Commercially Sensitive Information or communication that could lead to conflicts of interest and/or constitute a prohibited practice in terms of the Act.
New:
2.13. “Information Barriers” means measures within an organization that are created to prevent exchanges of Competitively Sensitive Information or communication that could lead to conflicts of interest and/or constitute a prohibited practice in terms of the Act.
Page 6
Section 2.25 has been substituted with a new definition as follows:
Old
2.25. “Spare Parts” means replacement products for worn, defective or damaged components or parts of a Motor Vehicle.
New
2.26. “Spare Parts_” means replacement products for worn, defective or damaged components, parts or Accessories of a Motor Vehicle.
Section 2.29.1 has been substituted with a new definition as follows:
Old
2.29.1. “In-Warranty” means the period in which an OEM has an obligation to repair or replace any component or part of the Motor Vehicle which proves defective in materials or workmanship.
New
2.30.1. “In-Warranty_” _includes Extended Warranty offered by an OEM and under the same provisions as the original warranty contract and means the period in which an OEM has an obligation to repair or replace any component or part of the Motor Vehicle which proves defective in materials or workmanship
Section 5:
Page 11
Section 5.4.3 had the following words added, highlighted in bold:
Old:
5.4.3. The Motor-body repairs of consumers who have insurance cover shall be undertaken by an Approved Motor-body Repairer during the In-Warranty period, as allocated by an Insurer to the consumer.
New:
5.4.3. The Motor-body repairs of consumers who have insurance cover shall be undertaken by an Approved Motor-body Repairer during the In-Warranty period, as allocated by an Insurer to the consumer. This section only applies to repairs performed in terms of an insurance claim and does not apply to repairs that fall outside of the insurance policy or to the service and/or maintenance of the vehicle.
Section 6: The Appointment of Motor-Body Repairers by OEMs
Page 15
Section 6.4 had the words “that it” deleted as follows:
Old:
6.4 It is also common that OEMs can place limits on the number of Motor-body Repairers that it approves in a particular Designated Geographic Area. The rationale advanced by OEMs for limiting the number of repairers is typically related to cost/investment justification viz-a-viz market saturation or insufficient volume of work available in the area concerned.
New:
6.4. It is also common that OEMs can place limits on the number of Motor body repairers approved in a particular Designated Geographic Area. The rationale advanced by OEMs for limiting the number of repairers is typically related to a cost/investment justification vis-à-vis market saturation or insufficient volume of work available in the area concerned.
Section 6.9.2 had the following words added, highlighted in bold:
Old
6.9.2. OEMs shall approve any Motor-body Repairer applicant that meets their standards and specifications.
New
6.9.2. OEMs should approve any Motor-body Repairer applicant that meets their standards and specifications. However, when deciding on the number of Motor-body Repairers in a particular Designed Geographic Area, OEMs must make their assessment on a case-by-case basis, must cater for entry of HDIs to participate and not limit their decision whether or not to approve a Motor-body Repairer to prevailing market conditions or low volumes of work in the Designated Geographic Area concerned.
Section 7: Appointment of Service Providers and Allocation of Work by Insurers
Pages 16/17
Section 7.8.2 had the following words added, highlighted in bold:
Old
7.8.2. Insurers must approve any Repairer that meet their standards and specifications, to undertake repairs on out-of-warranty Motor Vehicles.
New
7.8.2 Insurers should approve any Repairer that meets their standards and specifications, to undertake repairs on out-of-warranty Motor Vehicles. However, when deciding on the number of Motor-body Repairers in a particular Designated Geographic Area, Insurers must make their assessment on a case-by-case basis,but must cater for entry of HDIs to participate and not limit their decision whether or not to approve a Motor-body Repairer to market demand and the volume of claims and work available in a Designated Geographic Area.
Section 9: Preventing Anti-Competitive Information Sharing by Multi-Brand Dealerships
Pages 19/20
Wherever the word “commercially” is present in this section it has been replaced with the word “competitively”.
Section 11: The Bundled Sale of Motor Vehicles with Value Added Products
Page 23
Section 11.1 had the following words added, highlighted in bold:
Old
11.1. In South Africa, when consumers buy a new Motor Vehicle, they are typically sold Maintenance Plan and/or Service Plan, included in the purchase price of the Motor Vehicle. Most consumers are unaware that the purchase price of the Motor Vehicle is bundled with these value-added products.
New
11.1. In South Africa, when consumers buy a new, demo and/or second-hand Motor Vehicle, they are typically sold a Maintenance Plan and/or Service Plan, included in the purchase price of the Motor Vehicle. Most consumers are unaware that the purchase price of the Motor Vehicle is bundled with these value-added products.
The word “new” has been deleted from the following Sections 11.6.1.1 and 11.6.1.2 as indicated by the crossed out word:
11.6.1.1. – purchase Value-Added Products (such as Maintenance Plans, Service Plans and Extended Warranties) concurrently and together with a new Motor Vehicle from Approved Dealers;
11.6.1.2. – purchase Value-Added Products (such as Maintenance Plans, Service Plans and Extended Warranties) separately from a new Motor Vehicle from Approved Dealers;
Page 24
Section 11.6.3 had the following words added, highlighted in bold:
Old
11.6.3. OEMs and independent/ 3rd party providers must transfer a Maintenance Plan and/or a Service Plan to a replacement Motor Vehicle in the instance where the Motor Vehicle is written off by the Insurer. In instances where there is no replacement Motor Vehicle after a write-off or it is not feasible to transfer a Maintenance Plan and/or a Service Plan to a replacement Motor Vehicle, the consumer shall be afforded the right to cancel the Value-Added contract and/or receive a refund of the value of the balance of the product.
New
11.6.3 OEMs and independent/3rd party providers must transfer a Maintenance Plan and/or a Service Plan to a replacement Motor Vehicle in the instancewhere the Motor Vehicle is written off by the Insurer. In instances where there is no replacement Motor Vehicle after a write-off or it is not feasible to transfer a Maintenance Plan and/or a Service Plan to a replacement Motor Vehicle, the consumer shall be afforded and notified of the right to cancel the Value-Added contract and/or receive a refund of the value of the balance of the product by Approved Dealers.
Page 25
The word “Commercially” is substituted with “Competitively” in the following paragraph: 11.6.4.4
Section 12: Access to Technical Information and OEM-Training for ISPs
Page 26
The addition of the following to the list contained in 12.2.3
k) part numbers on quotations and invoices