The Australian car dealers lost a court appeal against Mercedes-Benz over its agency sales model.
The Federal Court found in favor of Mercedes-Benz over a majority of its franchised dealers, stating there was no misleading or unconscionable conduct.
The Australian Automotive Dealer Association expressed disappointment over the decision and is pushing for additional protections for automotive franchisees.
Mercedes-Benz switched to an agency sales model, leading to a sales downturn, legal battles, and a focus on protecting franchisees in the future.