The Australian Competition and Consumer Commission (ACCC) has taken car manufacturer Audi to the Federal Court, alleging the German manufacturer misled and deceived consumers over diesel vehicle emission claims.
In a case the echoes parent company VW's damaging emissions deception scandal, the consumer watchdog is seeking pecuniary penalties and corrective advertising amid claims Audi Australia supplied more than 12,000 affected vehicles to Australian consumers.
If Audi is found guilty of deception, it could cost the brand millions of dollars in remediation work, lost sales and marketing to correct the record and restore trust in the brand.
At the heart of the issue is the alleged use of 'defeat' software that allows Audi vehicles to pass emissions tests in a laboratory, but not on the road. The software works by instructing the vehicles to produce lower nitrogen oxide emissions in controlled laboratory conditions.
The ACCC alleged the scheme was applied to diesel models across much of the Audi range from small hatchbacks A1 up to large family sedans A6, the Q3 and Q5 SUVs and the TT Coupes.
In December 2016, Volkswagen Australia and Audi Australia launched a voluntary recall to remediate affected diesel vehicles, which involves a software update and, in some cases, a minor hardware upgrade.
“Consumers expect that there is some relationship between the performance of the car as set out in the sales brochure and their day to day on-road use,” ACCC Chairman Rod Sims said.
“We allege that the installation of software which allows the vehicle to meet testing standards but then causes the vehicles to operate differently on the road, and associated representations about the vehicle and its performance, breach the Australian Consumer Law.”
The ACCC said the scandal also impacts Skoda vehicles but has decided not to launch court proceedings against the brand due to its relatively low sales volumes.
Audi's media planning and buying agency is PHD, which won the VW account in a global pitch from MediaCom last year.
The ACCC began investigating VW over misleading emissions claims in 2015. It is estimated VW's 'dieselgate' scandal could eventually cost the world's second-largest car maker up to US$86 billion globally.
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