Australian car manufacturer LDV is facing legal action from the Australian Competition and Consumer Commission (ACCC) over alleged misleading advertising practices. The ACCC claims that LDV misrepresented the durability and suitability of certain vehicle models, specifically the T60 ute and G10 van, which are prone to rust and corrosion within five years of manufacture.
The ACCC has initiated proceedings against LDV Automotive Australia in the Federal Court, alleging that the manufacturer made deceptive representations to consumers regarding the ruggedness and endurance of these models. LDV dealerships sold over 60,000 T60 and G10 vehicles between 2018 and 2024, leading to more than 5,000 consumer complaints about rust and corrosion issues.
Advertisements for the LDV vehicles, featuring the T60 and G10 models, depicted them traversing challenging terrains like beaches, unsealed roads, and rough landscapes. However, the ACCC asserts that these vehicles have a propensity to develop rust or corrosion within five years of production, rendering them unsuitable for the advertised terrains.
ACCC Chair Gina Cass-Gottlieb emphasized that consumers expect vehicles to meet the quality standards promoted in advertisements, especially considering the significant financial investment involved in purchasing a new car. LDV Australia expressed disappointment over the legal proceedings, stating that they had been engaging in discussions with the ACCC to address consumer concerns.
In addition to the alleged misrepresentations, the ACCC raised concerns about LDV’s 10-year anti-corrosion warranty for the T60, which implied that the vehicles were not at risk of rust or corrosion for a decade. However, the ACCC claims that LDV was aware of rust issues in the T60 and G10 models within five years of manufacture as early as April 2019.
The ACCC is seeking penalties, declarations, consumer redress, and other orders in response to LDV’s advertising practices. The watchdog contends that LDV’s conduct has harmed consumers by diminishing the value of their vehicles and depriving them of the opportunity to make informed purchasing decisions.
As the legal proceedings unfold, LDV Australia will have the opportunity to defend against the ACCC’s allegations and address the concerns raised regarding the durability and suitability of the T60 and G10 models. The outcome of this case could have implications for how car manufacturers advertise and represent their products in the Australian market.
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