The consumer watchdog has authorised the Motor Trades Association of Australia (MTAA) to promote a “real times” guide.

The guide recommends against the smash repairer practice of quoting more time for a job – with the knowledge of insurers – to compensate for a low hourly rate.

The Australian Competition and Consumer Commission (ACCC) says the development follows on from a 2005 Productivity Commission inquiry into the relationship between the insurance and smash repair sectors.

The Productivity Commission recommended the quoting practice known as “funny time, funny money” be abandoned. Earlier this year Sunrise Exchange News reported on the proposals, and the ACCC has finally granted authorisation.

The MTAA says its guide has been developed to reflect the true time taken to remove and replace parts and repaint damaged motor vehicles.

Authorisation from the ACCC provides immunity from court action for conduct that might otherwise raise concerns about competition.

ACCC Chairman Graeme Samuel says there is no provision in the MTAA’s application for the collective adoption of the guide.

“Smash repairers and insurers will be free to choose whether to develop or accept quotes based on the guide,” he said. “Insurers are also likely to maintain a strong bargaining position under authorisation and should be in a position to constrain potential price rises.”