萬國法律事務所

There have been constant disputes arising from the auto service industry.  The Consumer Protection Committee of the Executive Yuan recently reviewed and adopted the “Items That Should Be Covered and Should Not Be Covered in the Standardized Motor Vehicle Maintenance and Repair Service Contract” (Items) drafted by the Ministry of Economic Affairs, and said Items are scheduled to be promulgated at the end of May 2021.
 
The new Standardized Contract stipulates that suppliers must publish the prices for basic maintenance and repair services and introduce a warranty provision stipulating that the supplier shall make repairs for free if the same malfunction occurs within one year or 20,000 kilometers of driving after the initial repair of a motor vehicle.  The supplier can be fined up to NTD 500,000 if the supplier fails to comply with the obligation created by the new Standardized Motor Vehicle Maintenance and Repair Service Contract (“Standardized Contract”).
 
The Consumer Protection Committee stated that the new  Standardized Contract will impose on suppliers the duty of disclosure, the requirment to announce the prices for basic maintenance, parts used for frequently-used repair services, service fees, towing fees, and other items in an obvious and conspicuous place of the workshop or on its official website for consumers.  The new amendment also stipulates that repair estimates shall not be payable.  However, the parties can agree to a fee payable if the repair estimate requires disassembly or computer diagnosis.
 
The new amendment also introduces a warranty provision, which stipulates that the supplier shall make repairs for free if the same malfunctions and defects occur within at least one year or 20,000 kilometers of driving after the initial or previous repair of the same malfunction / defect of a motor vehicle.  The new warranty provision also states that the parts, sheet metal, paints, and other items also fall within the definition of a motor vehicle.  However, the new warranty provision includes a disclaimer for suppliers.  If the malfunctions result from the consumer’s own parts or installations and or modifications from non-original manufacturers after the repair, the suppliers will not be responsible for compliance with the warranty.
 
If suppliers fail to comply with the new Standardized Contract, the authority may order them to make corrections within a certain time limit.  If the suppliers fail to make such corrections, they can be fined an amount from NTD 30,000 to NTD 500,000 until the correction is made.  The Ministry of Economic Affairs stated that the new Standardized Contract is scheduled to be promulgated by the end of May 2021.
 
The Consumer Protection Committee states that if suppliers breach the new Standardized Contract, causing damages to consumers with excessive charges for maintenance and repair services or avoidance of warranty compliance, the consumers may claim civil damages from the suppliers.