The Australian Automobile Association says a proposed code of conduct for the automotive industry would be "weak" and does not go far enough for consumers.
The Commonwealth Consumer Affairs Advisory Council has conducted an inquiry into the automotive repair market.
It found independent repairers have been frustrated by a lack of technical information available to them, forcing motorists to take their cars to dealerships for servicing.
The Federal Government today agreed to three recommendations from the inquiry, including setting up a voluntary code of conduct that will be negotiated by the industry.
It would mean independent repairers would have better access to repair information, and lead to more choice for consumers.
Assistant Treasurer David Bradbury says consumers should have the right to choose where they take their cars for service and repair.
An update on the voluntary code negotiations will be provided to the Government mid-year.
But Australian Automobile Association executive director Andrew McKellar says a voluntary code does not go far enough.
"I think essentially the Government has abdicated its responsibility in this area, and the people who will be left out of this process are consumers - they're the ones who are really being denied their rights in terms of ownership and control over the data that goes with their vehicle," Mr McKellar said.
Industry body calls for consumer control in data access
Mr McKellar says increased data for new cars is "very considerable", and the consumer should have ownership and control of who can access the data.
"This is an emerging issue ... you have a lot of information there about the performance of the car," he said.
"They should have the choice as to who services and repairs the vehicle, and the information that their choice of service provider should get.
"If you buy a car, you should have a choice about where and how you get that car serviced."
He says the issue does have some relevance to the situation currently facing Volkswagen owners who have complained about serious mechanical problems with their cars.
Many Volkswagen owners have contacted the ABC after a Melbourne coronial hearing raised the possibility that a loss of power in a Volkswagen car could have contributed to the death of a woman on a freeway two years ago.
Since the hearing into Melissa Ryan's death became public, a number of drivers have outlined their dealings with Volkswagen, saying their requests for help with mechanical problems were not dealt with properly.
Volkswagen is now facing two possible class actions.
Volkswagen Australia has , saying there is no evidence to suggest "vehicle fault was involved in [Melissa Ryan's] crash".
But Mr McKellar says some manufacturers cannot be relied on to act in the interest of consumers.
"They aren't always transparent - they don't always come out and tell it like it is," he said.
"What we've seen in that particular instance is we've seen Volkswagen try to protect its own interests. They haven't come clean with the public [and] they haven't said whether or not they know whether there is an issue with some of their vehicles.
"It's a perfect example of where the consumer interest comes last if you leave it to industry to try and regulate itself."