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ED Automakers' deception

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Hyundai, Kia duped consumers into buying expensive spare parts

Hyundai Motor and Kia Motors have unfairly disparaged the qualities and functions of non-OEM (original equipment manufacturing) spare parts, the Korea Fair Trade Commission said last Wednesday. The nation's two largest automakers did so to induce consumers to use expensive OEM parts and increase their revenues, the KFTC explained. According to the antitrust agency, these carmakers said in their instruction manuals that “only the use of original parts can maintain the vehicle's function at the highest level,” and “the use of non-original parts can cause poor performance and breakdown.”

The biggest problem, of course, is how the two automakers deceived consumers. Recently, the KFTC compared original and non-original parts in Hyundai Motor's Avante, Sonata and Grandeur models. As a result, it has been confirmed that the automaker had unduly inflated the prices of OEM spare parts under the pretext of their “originality.” The company also described non-OEM parts as defective products, although they had no problems in quality and performance, leading consumers to buy expensive original parts.

No less disappointing is the attitude of KFTC, which did not seem to care much about protecting consumers. The two companies had reportedly included the wrong phrases in their vehicles' instruction manuals since the 2000s. Numerous requests had been made to rectify the two companies' improper behavior of undercutting non-original parts by comparing them to defective or unlawful products. Therefore, it isn't easy to understand why it took so long for the KFTC to raise the issue. Moreover, the level of discipline stopped at a “warning,” not a “corrective order.” The KFTC seems to have acted for years in the typical manner of condoning big business.

The forced use of original parts increases consumers' burden in exchanging expendable supplies. It also creates a vicious cycle by preventing the use of alternative parts and raising auto insurance premiums. The two companies caused the buyers of their cars ― their most important clients ― to suffer from double or triple damages. They must apologize to consumers and non-OEM parts makers and take follow-up steps to guarantee consumers' rights to choose parts when fixing their vehicles. The KFTC, for its part, ought to strengthen its original role as a fair trade regulator.