(Reuters) – On Wednesday, Australia’s competition watchdog took Honda Motor Co.’s local unit before the court. The Japanese carmaker claimed that its two dealerships have stopped servicing Honda cars.

Between January and June last year, Honda Australia told customers of Brighton Automotive (Astoria) in Victoria and Tynan Motors in New South Wales that the dealerships would no longer service Honda vehicles, the Australian Competition & Consumer Commission (ACCC) alleged https://www.accc.gov.au/media-release/honda-in-court-for-allegedly-misleading-consumers-about-dealership-closures.

According to the ACCC, Honda informed customers of Astoria’s and Tynan businesses closing via email, text message and phone conversation and instructed them to get in touch with a Honda Dealership or Honda Service Centre to schedule their next service.

The ACCC stated that the dealers continued to provide service for Honda vehicles and Honda cars after the end of Honda Australia’s agreements in January 2021. This was following the restructuring of Honda Australia’s carmaker unit in May 2019.

Honda Australia was accused by the regulator of inflicting “harm” on the Astoria/Tynan business. They falsely claimed they were closing or planned to close. This resulted in lower customer footfall. The court ordered a penalty.