New block exemption: ‘too much left unsaid’
06 March 2023
The NFDA has raised concerns that replacing current retained block exemption rules (MVBER) with an aftermarket instrument “broadly in line with the status quo” does not go far enough to retain today’s “healthy levels of competition” in UK automotive marketplaces.
The draft Motor Vehicle Agreements Block Exemption Order (MVBEO) “may leave too much unsaid”, says the NFDA, and wants these issues addressed “given their potential indirect effects”.
The NFDA has reminded the Department for Business and Trade (DBT) and CMA of the pre-2017 market landscape – and warns there is a “disconnect between current and imminent market realities, and the historic evidence base upon which new regulation has been proposed”.
The NFDA submitted its response to the DBT consultation on MVBEO last week. In it, the NFDA outlined market trends and the possible implications of future sales models such as agency.
The IGA also last week called for further MVBEO clarifications, to make it clear consumers know they are free to choose who repairs their vehicle. IGA chief executive Steve James is concerned there is no requirement for in-vehicle messaging, and believes further changes are required to ensure consumers are not financially disadvantaged.
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