'Rust-proof' utes under spotlight amid false ad claims
The local distributor of Chinese-made LDV vehicles is being sued for allegedly misleading consumers about how tough and durable their utes and vans are.
LDV Australia portrayed its T60 Max ute and G10 van as "tough", "robust" and "built to stand up to the everyday and more" in advertisements shown for five years.
The vehicles were shown driving on unsealed roads, beaches, rivers, dirt or gravel terrain.
But the consumer watchdog alleges Australian LDV distributor Ateco did not warn consumers the two models rusted or corroded within five years of manufacture.
Complaints about the corrosion and rust began months before Ateco first aired the ads in 2019, the Australian Competition and Consumer Commission said.
More than 5000 complaints were received by the company by the time ads ended in November 2024.
From 2018 to 2024, LDV's dealerships sold more than 60,000 T60 and G10 vehicle models, generating more than $1.5 billion.
Ateco, which trades as LDV Australia, also advertised that the T60 ute could not develop rust or corrosion in the first 10 years of its manufacture, putting a 10-year anti-corrosion warranty on the model between 2019 and 2020, the commission alleged.
The roads the models were driving on in the ads fast-tracked rust and corrosion, the commission said.
The commission's chairwoman alleged Ateco's advertising - which ran on television, radio and online - might have caused harm to consumers.
"Consumers rightfully expect that the vehicle they purchase will live up to the quality and uses that it was advertised to include," Gina Cass-Gottlieb said.
"They lost the opportunity to make an informed decision that may have involved purchasing an alternative vehicle that did not carry the same risks."
LDV Australia said it was disappointed the consumer watchdog had taken the issue to the Federal Court.
"For 18 months, LDV Australia has been engaged in good discussions with the commission to resolve its concerns, and to provide remedies to consumers," general manager Dinesh Chinnappa said in a statement.
"It is disappointing this process has ended in these legal proceedings ... and we look forward to defending the (commission's) allegations in court."
Ateco has imported cars to Australia since 1985 and distributes Chinese-manufactured LDV vehicles through 102 dealerships across the country.
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