ACCC sues Volkswagen over emissions cheating

The Australian Competition and Consumer Commission (ACCC) has kicked off a legal battle against German automaker Volkswagen for misleading consumers about the diesel emission rate of 10 car models that sold over 57,000 units across Australia in the past five years.

The ACCC has taken against German company Volkswagen Aktiengesellschaft (VWAG) and its Australian subsidiary, Volkswagen Group Australia Pty Ltd (VGA), to the Federal Court of Australia after discovering that the automaker installed a “defeat” software that controlled the vehicles’ exhaust gas recirculation system. Accorting to the ACCC, the “defeat” software causes the cars to produce lower nitrogen oxide emissions when subject to test conditions in a laboratory but not during normal driving conditions.

The ACCC said Volkswagen, in installing the “defeat” system and not disclosing its existence and operation to the consumers, has misrepresented the vehicles as compliant to Australian and European standards.

“The ACCC alleges that Volkswagen engaged in multiple breaches of the Australian Consumer Law by concealing software in their vehicles to cheat emissions testing and misleading consumers about the vehicle’s compliance with standards and emission levels during on-road conditions,” ACCC Chairman Rod Sims said in a statement.

In its complaint, the ACCC accused Volkswagen of deliberately marketing its vehicles in Australia as being environment-friendly and clean burning contrary to its true emission condition. The non-compliant cars sold between 2011 and 2015 in the country include Amarok 2.0 litre, Caddy 1.6 and 2.0 litre, Eos 2.0 litre, Golf 1.6 and 2.0 litre, Jetta 1.6 and 2.0 litre, Passat 2.0 litre, Passat CC 2.0 litre, Polo 1.6 litre, Tiguan 2.0 litre and CC 2.0 litre.

“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.

“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,” Sims pointed out.

The ACCC sought the Federal Court’s help to compel Volkswagen to rectify its advertising and to fine the world’s second largest car manufacturer for damages and penalties.

Under the Competition and Consumer Act of 2010, the Australian Design Rules strictly monitor diesel emission rates of motor vehicles sold in the country. High emission of nitrogen oxide causes serious respiratory illnesses.

Apart from the ACCC, private class actions have been filed before the Federal Court relating to Volkswagen and other branded vehicles for not complying with laws on vehicle emission rate.