Australia says Volkswagen faces hefty fines if emissions cheating confirmed

Mr Sims said if VW confirmed it did use such devices, the ACCC could take action against VW for breaching mandatory safety standards and potentially for misleading and deceiving consumers, causing detriment to consumers and competition and stifling innovation.

Volkswagen’s Australian subsidiary has been unable to respond to calls from the government to provide “urgent clarification” on whether its cars sold locally have been caught up in the biggest scandal of the carmaker’s 78-year history.

The watchdog has deemed the investigation a priority and is demanding Volkswagen hand over its marketing materials so it can determine if Australian vehicle buyers were exposed to false, misleading or deceptive sales advertisements and marketing.

Currently, there has been no confirmation from the carmaker about the impact of the scandal on the local market.

“There’s so much we don’t know, but we’re certainly on the case and we’re pursuing that right now”, he said.

A corporation can be fined A$1.1 million ($777,000) for each breach of Australian Consumer Law. “There’s no doubt that the penalties could be significant”.

Mr Sims said the ACCC could make voluntary or mandatory requests for information to Volkswagen Group.

“Already we have been contacted by hundreds of consumers in Australia expressing concerns that their cars – including VW, Audi and Skoda brands – have been impacted by this incident and inquiring about legal action”, Mr Scattini said.

Volkswagen is yet to clarify if it has supplied cars or components into the Australian market that use defeat devices.

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

The German auto giant is facing its deepest-ever crisis after admitting up to 11 million diesel cars worldwide were equipped with sophisticated software that covertly switches on pollution controls when they undergo an emissions test. Meanwhile, consumer advocate Choice is campaigning for greater scrutiny of vehicle manufacturers after tests found a few cars used over 30 per cent more fuel per 100km than their manufacturers’ claims.