Car manufacturers will no longer be allowed to rip local dealers off on servicing and warranties, if Labor wins the next election.
Under an industry-specific code Labor plans to introduce, manufacturers and dealers will have clear rules about contract terms.
"(Right now) it is the manufacturers that generally write the terms of dealership agreements that cover consumer responsibilities," shadow assistant treasurer Andrew Leigh will say in a speech on Tuesday.
"Dealers are under pressure to agree with (them) for threat their agreement may not be renewed."
Labor says the power imbalance makes it difficult for dealers to properly look after their customers.
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The Australian Consumer and Competition Commission recently found examples where manufacturers refused to refund customers, and could void warranty claims for spurious technical reasons.
"A code will deliver clear ground rules for manufacturers and dealerships," Mr Leigh says.
"This will give dealerships real backup, regulatory muscle, when they're looking to speak up for the rights of their customers."
Industry-specific codes already exist in other areas with market power imbalances, such as the Wheat Port Code, the Horticulture Code, the Oil Code, and the Unit Pricing Code.
Mr Leigh said the government's response to unfair practices in the car industry was disappointing.
"Our understanding is that the government has tasked just one full-time Treasury employee to look at possible policy options on access to service repair," Mr Leigh says.
"When Scott Morrison replaced Malcolm Turnbull as prime minister, he demoted the assistant minister who was formerly responsible for this area to the backbench."
