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ACCC takes LDV to court over 'rust and corrosion' concerns

ACCC takes LDV to court over 'rust and corrosion' concerns

Australia's consumer watchdog has taken car manufacturer LDV to court for the alleged "misleading advertising" of certain vehicle models which tend to "rust or corrode" within five years of being built.
The Australian Competition and Consumer Commission (ACCC) said it had instituted proceedings against Ateco Automotive Pty Ltd, trading as LDV Automotive Australia, in the Federal Court.
It alleges the manufacturer made "misleading representations" to consumers about the "durability and suitability" of certain vehicle models in breach of Australian consumer law.
The ACCC said these misrepresentations were made between April 23, 2019 and November 30, 2024.
"[This included] that models with T60 and G10 in their names (excluding the eT60) were durable and tough, and that they were suitable for use in, near, or on, a variety of environments and off-road terrains,' the ACCC said in a release.
LDV receives 5,000 consumer complaints
LDV dealerships sold more than 60,000 T60 and G10 vehicle models between 2018 and 2024.
The ACCC said in that time, LDV received more than 5,000 consumer complaints for rust or corrosion in those models.
The ACCC had concerns about advertising of the LDV G10 van.
(
Supplied: LDV
)
It said these "alleged representations" were made in advertisements published on its website as well as TV, radio and social media.
These often portrayed the vehicles on beaches or near lakes, rivers or "other pooled water".
The vehicle was also pictured on unsealed roads or in dirt or gravel.
The consumer watchdog alleged the relevant T60 and G10 vehicle models had a "propensity" to develop rust or corrosion within five years of manufacture.
It said therefore that the advertised LDV vehicles, including those in which rust or corrosion occurred, were not durable and tough as advertised.
The ACCC said the risk of rust only increased if the vehicles were used "in, near, or on, the advertised terrains" — making them unsuitable for these terrains.
"A new car is a significant financial purchase," ACCC chair Gina Cass-Gottlieb said.
"
Consumers rightfully expect that the vehicle they purchase will live up to the quality and uses that it was advertised to include.
"
The ACCC alleges the LDV has made 'misleading representations' of certain vehicle models.
(
LDV
)
Anti-corrosion warranty concerns
The ACCC also raised concerns about the 10-year anti-corrosion warranty for the T60, advertised between April 23, 2019 and August 31, 2020.
It alleged this indicated the vehicles "did not have a material risk" of developing rust or corrosion in the first 10 years of manufacture.
The ACCC also alleged that by April 2019, LDV was aware rust or corrosion issues were "prevalent" in the T60 and G10 within within five years of manufacture.
"We allege that despite being aware of the propensity for the vehicles to rust, LDV continued to make representations for a number of years that the T60 and G10 vehicles were durable and suitable for use in a variety of terrains," Ms Cass-Gottlieb said.
"As a result, we allege that LDV's conduct is likely to have caused harm to affected consumers.
"The propensity for rust or corrosion lowered the value of their vehicles, and because consumers lost the opportunity to make an informed decision that may have involved purchasing an alternative vehicle that did not carry the same risks."
The ACCC is seeking penalties, declarations, consumer redress, costs and other orders.
Ateco Group has been contacted for comment.

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Australia's share market has closed at its highest ever level as multiple sectors rallied on hopes of a trade resolution between the United States and China. The S&P/ASX200 rallied 66 points, or 0.78 per cent, to 8,581.7, as the broader All Ordinaries jumped 65.4 points, or 0.75 per cent, to 8,807.3. The rally on Tuesday came as the local bourse caught up on two positive Wall Street sessions after the long weekend and amid positive signs from US-China trade talks in London. The top 200 pipped its previous record close set on February 14, but came up short of that day's intraday peak of 8,615.2. Commonwealth Bank continued to defy gravity, breaking $182 for the first time as the financial sector also smashed its record to close with a combined market cap of more than $900 billion. The Australian dollar is buying 65.05 US cents, up from 64.41 US cents on Friday at 5pm, but still seemingly unable to break above 65.40 US cents, after a tepid rebound in consumer sentiment boosted the likelihood of more Reserve Bank interest rate cuts. Australia's share market has closed at its highest ever level as multiple sectors rallied on hopes of a trade resolution between the United States and China. The S&P/ASX200 rallied 66 points, or 0.78 per cent, to 8,581.7, as the broader All Ordinaries jumped 65.4 points, or 0.75 per cent, to 8,807.3. The rally on Tuesday came as the local bourse caught up on two positive Wall Street sessions after the long weekend and amid positive signs from US-China trade talks in London. The top 200 pipped its previous record close set on February 14, but came up short of that day's intraday peak of 8,615.2. Commonwealth Bank continued to defy gravity, breaking $182 for the first time as the financial sector also smashed its record to close with a combined market cap of more than $900 billion. The Australian dollar is buying 65.05 US cents, up from 64.41 US cents on Friday at 5pm, but still seemingly unable to break above 65.40 US cents, after a tepid rebound in consumer sentiment boosted the likelihood of more Reserve Bank interest rate cuts. Australia's share market has closed at its highest ever level as multiple sectors rallied on hopes of a trade resolution between the United States and China. The S&P/ASX200 rallied 66 points, or 0.78 per cent, to 8,581.7, as the broader All Ordinaries jumped 65.4 points, or 0.75 per cent, to 8,807.3. The rally on Tuesday came as the local bourse caught up on two positive Wall Street sessions after the long weekend and amid positive signs from US-China trade talks in London. The top 200 pipped its previous record close set on February 14, but came up short of that day's intraday peak of 8,615.2. Commonwealth Bank continued to defy gravity, breaking $182 for the first time as the financial sector also smashed its record to close with a combined market cap of more than $900 billion. The Australian dollar is buying 65.05 US cents, up from 64.41 US cents on Friday at 5pm, but still seemingly unable to break above 65.40 US cents, after a tepid rebound in consumer sentiment boosted the likelihood of more Reserve Bank interest rate cuts. Australia's share market has closed at its highest ever level as multiple sectors rallied on hopes of a trade resolution between the United States and China. The S&P/ASX200 rallied 66 points, or 0.78 per cent, to 8,581.7, as the broader All Ordinaries jumped 65.4 points, or 0.75 per cent, to 8,807.3. The rally on Tuesday came as the local bourse caught up on two positive Wall Street sessions after the long weekend and amid positive signs from US-China trade talks in London. The top 200 pipped its previous record close set on February 14, but came up short of that day's intraday peak of 8,615.2. Commonwealth Bank continued to defy gravity, breaking $182 for the first time as the financial sector also smashed its record to close with a combined market cap of more than $900 billion. The Australian dollar is buying 65.05 US cents, up from 64.41 US cents on Friday at 5pm, but still seemingly unable to break above 65.40 US cents, after a tepid rebound in consumer sentiment boosted the likelihood of more Reserve Bank interest rate cuts.

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