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The car industry faces an investigation into capped price vehicle servicing after Kia was found overcharging customers.
Thousands of drivers promised fixed maximum charges when their vehicles were serviced are eligible for refunds after the nation's consumer watchdog discovered Kia's prices changed four times from 2012 to late 2014.
Despite promoting that "the capped price applicable for each service is the maximum you will pay for your scheduled service", its terms and conditions allowed prices to change at any time.
The Australian Competition and Consumer Commission said such advertising was likely to amount to misleading representation contravening the Australian Consumer Law.
Kia Motors Australia "cooperated fully" with the investigation, and agreed to alter terms and conditions so that service charges are locked in at the price advised when an individual car is bought.
The consumer watchdog plans to review other manufacturers' capped price deals. "Businesses that make capped price offers of this type in their advertising campaigns or represent that consumers can fix the maximum charge for particular services must ensure that these offers are not eroded by later reliance on amendment provisions in their terms and conditions which permit price changes," ACCC commissioner Sarah Court said. False or misleading claims carry a maximum penalty of up to $1.1 million per breach.
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