The Australian Competition and Consumer Commission (ACCC) has taken action against Volkswagen alleging it engaged in “deceptive conduct” in relation to the diesel emissions scandal.
As a result the ACCC is seeking corrective advertising along with declarations, pecuniary penalties and findings of fact and costs.
The proceedings, to take place in the Federal Court, are against German company Volkswagen Aktiengesellschaft (VWAG) and its Australian subsidiary Volkswagen Group Australia (VGA).
The ACCC is alleging that between 2011 and 2015, VGA marketed the vehicles in Australia as being environmentally friendly, clean burning, low emission and compliant with European standards, using information from VWAG, when it was not the case.
It follows the recall of several affected vehicles by Volkswagen Australia in February this year.
The ACCC opened investigations into the car brand in September last year following investigations from the American Environment Protection Agency (EPA) into the dodging of emission controls.
ACCC chairman Rod Sims says Volkswagen engaged in multiple breaches of the Australian Consumer Law by concealing software in its vehicles to cheat emissions testing and misleading consumers about the vehicle’s compliance with standards and emission levels, during on-road conditions.
“Consumers rightly expect that their vehicle’s emissions would operate as advertised during their day-to-day use and we allege that this was not the case with more than 57, 000 vehicles sold in Australia by Volkswagen over a five-year period,” Sims says.
“These allegations involve extraordinary conduct of a serious and deliberate nature by a global corporation and its Australian subsidiary misleading consumers and the Australian public. We expect higher standards of behaviour from all companies that supply to Australian consumers,”
In addition, ACCC is also alleging that both VWAG and VGA engaged in misleading conduct by representing the vehicles compiled with Australian and European standards when it was not the case. It also claims VWAG engaged in misleading conduct by installing and not disclosing the existence of “defeat' software in the vehicle’s exhaust gas recirculation system.
However Volkswagen has issued a statement noting the court action does not provide any practical benefit to consumers because software solutions for cars impacted by the recall is expected soon.
Software solutions for 70% of vehicles have been submitted to the Department of Infrastructure and Regional Development and are expected to be approved imminently, and for all remaining vehicles by the end of the year.
Volkswagen Group Australia MD Michael Barsch says: "The best outcome for customers whose vehicle is affected is to have the voluntary recall service updates installed.
"This takes 45 minutes. It is free of charge. We will be contacting owners of affected vehicles to arrange an appointment with their dealer.”
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.