In a statement Thursday, the Australian Competition and Consumer Commission said it had begun proceedings in the Federal Court of Australia against the German auto maker and its Australian subsidiary.
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This software meant the cars produced lower nitrogen oxide emissions in a laboratory, but then switched to a different mode during normal driving conditions.
The ACCC claims Volkswagen engaged in misleading conduct by representing that the vehicles complied with Australian and European standards and all Australian regulatory requirements when, because of the defeat software, that was not the case.
Volkswagen Australia has been contacted for a response.
The Australian Competition and Consumer Commission (ACCC) has launched proceedings against Volkswagen AG and its Australian subsidiary in the Federal Court, alleging misleading or deceptive conduct in regards to the emissions from its diesel-powered vehicles.
In October past year, Volkswagen Group Australia confirmed around 90,000 diesel VWs, Skodas and Audis sold in Australia were fitted with the software that masked the true emissions levels on the vehicles.
“These allegations involve extraordinary conduct of a serious and deliberate nature by a global corporation”, ACCC chairman Rod Sims said in a statement.
“We anticipate higher standards of conduct from all businesses that provide to Australian consumers”.
ACCC chairman Rod Sims said Volkswagen had been uncooperative and the commission would be seeking a penalty and a court declaration saying the vehicle manufacturer acted illegally.
About 90,000 Volkswagen, Audi and Skoda vehicles are affected by the Dieselgate emissions issue in Australia, the majority of them VWs including the Amarok, Golf, Polo, Passat, Tiguan, Jetta, CC, EOS and Caddy.
The carmaker has endured an worldwide backlash since showing a year ago that around 11 million of its vehicles had applications or socalled “defeat devices” created to circumvent official emissions evaluations. NOx can cause respiratory illnesses and is particularly harmful to vulnerable consumers such as the young, the elderly, and those with pre-existing respiratory conditions.
In the United States, Volkswagen has agreed to pay up to $US10 billion to compensate owners of cheating vehicles.
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Last year, Volkswagen Australia recalled 100,000 of its vehicles sold in the country to remove the device, which is rigged to trick smog-testing apparatuses.
The ACCC to take legal action against Volkswagen Australia over alleged cheat devices.
The vehicle maker is also facing a class action led by Maurice Blackburn to recover losses for customer who bought cars fitted with the emissions-rigging software.
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In February 2016, Volkswagen Group Australia announced a consumer recall, with rectification for affected Amarok vehicles.
