Competition watchdog the ACCC has launched Federal Court proceedings against Ateco Automotive, trading as LDV Automotive Australia, alleging it misled consumers over the durability and suitability of certain LDV vehicle models.
It’s claimed that between April 2019 and November 2024 LDV allegedly misled consumers by promoting T60 and G10 models (excluding the eT60) as durable and suitable for use in various environments and off-road conditions.
The claims were alleged to have been made across LDV’s website, television, radio, Facebook and Instagram, often depicting the vehicles on beaches, near water, or on unsealed and gravel roads.
However, the ACCC alleges the relevant T60 and G10 models were prone to rust or corrosion within five years of manufacture, making them inconsistent with LDV’s advertised claims of durability and toughness.
It is further alleged that the risk of rust increased when the vehicles were used in or near certain terrains, rendering them unsuitable for the conditions depicted in LDV’s advertising.
“A new car is a significant financial purchase, and consumers rightfully expect that the vehicle they purchase will live up to the quality and uses that it was advertised to include,” ACCC Chair Gina Cass-Gottlieb said.
The ACCC also alleges that between April 2019 and August 2020, LDV misled consumers by advertising a 10-year anti-corrosion warranty on certain T60 models, implying no significant risk of rust within that period. The regulator claims this was false due to the vehicles’ susceptibility to corrosion.
The ACCC further alleges that by April 2019, LDV was aware of widespread rust and corrosion issues in T60 and G10 models within five years of manufacture, and that its advertising claims were false or misleading as they lacked a reasonable basis.
Between approximately January 2018 and November 2024, LDV received more than 5,000 consumer complaints regarding rust or corrosion in its T60 and G10 vehicle models, usually via LDV dealerships.
“We allege that despite being aware of the propensity for the vehicles to rust, LDV continued to make representations for a number of years that the T60 and G10 vehicles were durable and suitable for use in a variety of terrains,” Cass-Gottlieb said.
“As a result, we allege that LDV’s conduct is likely to have caused harm to affected consumers, including because the propensity for rust or corrosion lowered the value of their vehicles, and because consumers lost the opportunity to make an informed decision that may have involved purchasing an alternative vehicle that did not carry the same risks.”
The ACCC is seeking penalties, declarations, consumer redress, costs and other orders.
LDV Australia acknowledged the announcement by the ACCC.
“For 18 months LDV Australia has been engaged in good faith discussions with the commission in an attempt to resolve its
concerns, and to provide remedies to consumers. It is disappointing this process has ended in these legal proceedings," said the general manager of LDV Australia, Dinesh Chinnappa.
“LDV Australia takes its obligations under Australian Consumer Law seriously, and we look forward to defending the ACCC’s allegations in court.”
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