The PCA converts into mandatory conditions the commitments presented by Ford Lusitana regarding motor vehicle warranties

Press Release 20/2015
The PCA converts into mandatory conditions the commitments presented by Ford Lusitana regarding motor vehicle warranties
 
The Portuguese Competition Authority (PCA) converts into mandatory conditions all the commitments presented by Ford Lusitana, S.A. (Ford), in order to address the competition concerns related to motor vehicle warranties’ restrictions.
 
The PCA’s investigation, started on 29th january 2015, revealed the existence, on Ford´s extended warranty contract, of a clause that prevented consumers from having repair and maintenance work carried out by independent repairers, if not to lose the right to the manufacturer’s warranty.
 
Confronted with the PCA’s competition concerns, Ford has offered a set of commitments in order to put an end to the investigated behaviors.
 
Following the public consultation, which allowed for any third parties to present their comments and once the analysis was finished, the PCA concluded that the commitments presented by Ford were adequate to eliminate the potential harmful effects on competition and on consumer welfare.
 
The commitments Ford is obliged to adopt, under the PCA’s monitoring, are the following:
 
- The modification of all contracts and documents which included the clause that prevented consumers from having repair and maintenance work carried out by independent repairers, if not to lose the right to the manufacturer’s warranty;
 
- The communication to its official dealer and repair networks of the inapplicability of any restrictions on the possibility of clients choosing independent repairers without losing the extended warranty rights.
 
Under the Portuguese Competition Act, the PCA may accept commitments presented by undertakings which are considered to be adequate to eliminate the effects on competition of the investigated behaviors.