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Australia’s consumer watchdog to investigate Volkswagen

The Australian Competition and Consumer Commission is the latest regulator to put Volkswagen in the cross-hairs, announcing that it’s launched an investigation into the beleaguered car-maker.

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VOLKSWAGEN faces billions of dollars of fines in Australia if local cars are found to be involved in the global emissions-cheating scam.

“If it emerges VW locally have engaged in the same conduct as the scandal overseas, then an action here is a logical and efficient extension of the work we are already doing overseas”, he said.

“Using defeat devices is specifically prohibited under the Australian design rules, which are picked up as Australian consumer law mandatory safety standards”, ACCC chairman Rod Sims said.

The regulator said the maximum penalty for a company for each breach of consumer law was Aus$1.1 million.

Sims said Volkswagen Group might have knowingly misled consumers with the faulty environmental readings, meaning the ACCC would be forced to “take action”.

“The ACCC will be seeking marketing materials from VW Group and will not hesitate to take action if consumers were exposed to false, misleading or deceptive representations”, Sims said.

“We usually like to do these things voluntarily”, he said, “but if we don’t get a few answers soon we might well be making compulsory requests”. Volkswagen Australia did not directly respond to the ACCC’s warnings.

Volkswagen Australia has yet to clarify whether it supplied cars or vehicle components with defeat devices – instruments that interfere with emissions control systems – to the local market.

“Businesses must be able to substantiate any claims they make”.

“At this stage, we are unable to comment on the local situation as we are still awaiting details with regards to our market”, the spokesman said. “What’s been admitted in Europe is simply staggering so I think Australian customers and owners of these vehicles need information and they need it quickly”, he said.

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Australia’s rivalry overseer Thursday threaten which typically Volkswagen could well be struck with the use of as much as Ausone dollar.millions (US$780,000) in fees for each individual pollution-cheating appliance hooked up also in include in its autos in the us. “Self-regulation, as the VW scandal has shown, is not working”, communications director Matt Levey said.

Volkswagen could face billion-dollar fines in Australia