Car Importer Carasso Fined $3.3 Million for Hindering Parallel Import Warranty Claims

Carasso Group, the Israeli importer of Renault, Nissan, Expang, and Chery vehicles, will pay approximately 11.5 million shekels (about $3.3 million) to the Israeli Competition Authority for allegedly obstructing warranty claims on cars imported through parallel channels. In Israel, new cars can be purchased via direct import from the factory, parallel import through foreign dealers, or minor import mainly for luxury vehicles. By law, established importers must provide warranty and service for vehicles brought in via parallel import.

According to Carasso's report to the Tel Aviv Stock Exchange, the company implemented a policy requiring service centers to demand an original warranty certificate from owners of parallel-imported vehicles. The Competition Authority argued this requirement made it harder for owners to exercise their warranty rights, especially since Carasso could have verified warranty status through the manufacturers’ global computer systems. This practice allegedly impaired the ability of vehicle owners to claim manufacturer warranties.

Following the investigation, Carasso agreed to a consent order and will pay the fine to the state. This case highlights regulatory scrutiny over importers’ compliance with warranty obligations for parallel imports in Israel’s automotive market.