22.04.2025 | Australian competition authority
The Australian Competition and Consumer Commission (ACCC) has initiated legal proceedings against Ateco Automotive Pty Ltd, which operates as LDV Automotive Australia, for allegedly breaching the Australian Consumer Law through misleading advertising. The ACCC claims that LDV misrepresented the durability and suitability of certain vehicle models, specifically the T60 and G10, suggesting they were tough and suitable for various terrains, despite evidence to the contrary.
According to the ACCC, between April 2019 and November 2024, LDV made numerous misleading claims in advertisements across various platforms, including television, radio, and social media. These advertisements depicted the vehicles in challenging environments, such as beaches and unsealed roads, while the ACCC alleges that these models had a tendency to rust or corrode within five years of manufacture.
The ACCC further asserts that LDV's representations about a 10-year anti-corrosion warranty were misleading, as the vehicles were likely to develop rust or corrosion much earlier. The commission claims that LDV was aware of these issues by April 2019 but continued to promote the vehicles as durable and suitable for off-road use.
With over 5,000 consumer complaints regarding rust or corrosion received by LDV dealerships from January 2018 to November 2024, the ACCC argues that LDV's actions have caused significant harm to consumers, including diminished vehicle value and the loss of informed purchasing decisions. The ACCC is seeking penalties, consumer redress, and other legal remedies against LDV.
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