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ACCC Chairman discusses VW and other matters

Home > News > Volkswagen

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14th October, 2015

Australian Competition and Consumer Commission Chairman Rod Sims yesterday addressed an event at the Brisbane Club, where he discussed three topics that illustrate the range of activities currently facing the ACCC.

First, he addressed the allegation that software installed in some Volkswagen, Audi and Skoda vehicles had been used to defeat emission testing regimes.

Mr Sims said: “This alleged behaviour is a clear example of the ACCC’s general concerns with truth in advertising. The ACCC treats truth in advertising as a priority for three reasons:

  • Consumer detriment: many consumers will value cars with low emission of nitrogen oxides
  • Competition: consumers may well have purchased another vehicle if they had known the facts, so competitors to VW, Audi and Skoda may have lost sales
  • Innovation: truthful advertising may well have forced more effort into research for lower emission engines”.

“We are still pressing VW Australia to understand the extent of consumer detriment. For example, without the defeat device, how do the actual emissions compare to the relevant Australian Standard? Further, what will be the impact of the proposed “fix” on the vehicles fuel economy and performance?”

“The ACCC’s enforcement investigation into potential breaches of mandatory standards and the Australian Consumer Law is well underway,” Mr Sims said.

Mr Sims went on to discuss other unrelated issues.

Source: ACCC



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