The Australian Competition and Consumer Commission (ACCC) has allowed RACQ Insurance to set labour rates for warranty repairs carried out by its approved network.

“Allowing RACQ-approved repairers to offer reciprocal warranty repairs to consumers [helps] those repairers better compete with larger-network repairers,” ACCC Deputy Chairman Michael Schaper said.

Under the scheme any RACQ-approved mechanic can correct defects in repairs, at no extra cost to members.

Instead, the repairer charges whoever carried out the original work, at a fixed labour cost.

The ACCC says Queensland’s competitive car repair market will limit any detrimental effects, and the scheme will benefit members who are travelling and are away from their usual mechanic.

The authorisation, granted for five years, protects against court action under the Competition and Consumer Act 2010.