The Australian Competition and Consumer Commission has launched an enquiry to determine whether consumers have been misled and says Volkswagen faces legal action and millions of dollars in fines if found to have breached consumer laws.
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It said the embattled German carmaker faced a maximum fine of .1 million per breach if it used cheating software on cars sold locally.
It’s understood Volkswagen Australia is still trying to obtain official information or confirmation as to whether local vehicles have been fitted with the TDI units in question.
“At this stage, we are unable to comment on the local situation as we are still awaiting details with regards to our market”, spokesman for the company told Sydney Morning Herald.
The ACCC has pointed out that the company’s “defeat device” cheatware breaches the country’s design rules, making the cars unroadworthy.
In Germany, Volkswagen has said it will refit up to 11.2 million affected vehicles in multiple countries at a cost of US$7.3 billion.
Sales of Volkswagen vehicles jumped 13 percent to nearly 37,000 in the seven months to July, accounting for about 6 percent of the Australian market, according to PPB Advisory. “The suspension will remain until the emission issues are addressed in those vehicles. All vehicles are technically safe and roadworthy”.
ACCC chairman Rod Sims said the regulator was seeking talks with Audi which conceded its local models were fitted with software created to deceive overseas pollution regulators.
The ACCC said it would seek marketing materials from Volkswagen and would not hesitate to take action if consumers were exposed to false, misleading or deceptive representations.
So-called “defeat devices” were specifically prohibited by Australian Consumer Law and claims on environmental benefits or fuel efficiency had to be able to be substantiated, he said.
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“We have started the process of working out the type and size of claims and whether there is commercial value and merit in pursuing it”, Mr Saker said.
