A federal court in Australia found that a local subsidiary of Japanese automaker Mazda Motor (OTC: MZDAY) Corp had misled customers about their rights. The country’s competition regulator said on Tuesday.

The Australian Competition and Consumer Protection Commission (ACCC) filed legal action against Mazda in October 2019 over seven different Mazda vehicles and 10 customers.

It says the court found that Mazda made 49 separate false or misleading claims against nine consumers seeking refunds or replacements after experiencing serious and recurring malfunctions on their vehicles within a year or two of purchase.

Mazda either ignored or rejected customer claims and told them that the only available remedy was repair, ACCC said.

“Mazda’s behavior towards these customers was not just terrible customer service, as the judge pointed out, it was a serious violation of the law,” ACCC Chairman Rod Sims said in a statement.

Mazda Australia said it is closely reviewing the federal court’s ruling but declined to comment further.

However, the court rejected the regulator’s allegations that Mazda was engaged in “bad faith” with these customers. He will decide on penalties and other orders required by the ACCC at a later date.

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