The ACCC has convinced Holden to agree to repair rights beyond what is required by the Australian Consumer Law.

The competition watchdog has received a legally enforceable undertaking from Holden after the car-maker accepted it had probably breached the consumer law.

Holden was accused of misleading consumers about their legal rights to repairs, a replacement or refund in the case of major faults with their products.

Holden had wrongly told some customers that repairs, replacements and refunds were at its discretion, and offered as a “goodwill gesture”.

Holden also admitted it misinformed customers by telling them they could not fix issues because the customer’s car had not been service by a Holden dealer or was second hand.

“Holden has offered an undertaking that goes beyond ensuring compliance with the current consumer guarantee obligations and commits to measures in line with recommended changes to the law,” ACCC chair Rod Sims said.

“These are great commitments that will have a significant and positive impact for consumers.”

Holden will now define multiple minor faults as a major failure, which entitles consumers to a refund or replacement.

The car-maker will also offer consumers a refund or replacement vehicle, rather than just a repair, if their car becomes undriveable within the first 60 days of purchase.

The ACCC says Holden will also conduct an external review of consumer complaints received since the start of 2016.

The regulator says Holden is not unique in its behaviour.

The ACCC has also launched legal action against Ford for allegedly misleading customers about their right to have faulty gearboxes repaired.

Mr Sims said the ACCC is “investigating a number of companies”.

“We find that car manufacturers are some of the most complained about businesses in Australia,” he told the ABC.

“The telling statistic is that nearly 20 per cent of contacts received by the ACCC about consumer guarantee issues concern motor vehicles.”

Australian Consumer Law gives customers rights over and above manufacturers' warranties for the repair or replacement of faulty goods.