QUT’s Professor Matthew Rimmer today welcomed an announcement by the ACCC that it will bring an action against Volkswagen over diesel emission claims.
“The action by the Australian Competition and Consumer Commission over Dieselgate will be an important test case for consumer rights, clean air, public health, and climate law,” said Professor Rimmer, director of Intellectual Property and Innovation Law at QUT.
“Moreover, it will complement the class action run by the law firm Maurice Blackburn on behalf of Australian consumers against Volkswagen over Dieselgate.
“There had been concern that the dispute over Dieselgate in Australia was lagging behind developments elsewhere in the world. For its part, Volkswagen has been arguing the circumstances in Australia are different to those in other jurisdictions.”
In today’s statement, ACCC Chairman Rod Simms said the ACCC alleged that Volkswagen engaged in multiple breaches of the Australian Consumer Law by concealing software in their vehicles to cheat emissions testing and misleading consumers about the vehicle’s compliance with standards and emission levels during on-road conditions.
“These allegations involve extraordinary conduct of a serious and deliberate nature by a global corporation and its Australian subsidiary misleading consumers and the Australian public. We expect higher standards of behaviour from all companies that supply to Australian consumers,” Mr Simms said.
As part of his ARC Future Fellowship (2011-2015), Professor Rimmer investigated greenwashing across a number of jurisdictions. He looked the performance of the ACCC in tackling greenwashing, as well as the role of the Federal Trade Commission in applying the Green Guides in the United States.
Professor Rimmer has also looked at the use of the Nordic Swan Eco-Label in Scandinavia, and the action taken against misleading and deceptive conduct by consumer ombudsmen, as well as the role of the United Kingdom’s Advertising Standards Authority in addressing greenwashing.
“In US, there was a partial settlement agreement in June 2016 between Volkswagen, the US Department of Justice, the US Federal Trade Commission, and private plaintiffs represented by the plaintiffs’ steering committee; and the State of California to resolve allegations of cheating emissions tests and deceiving customers,” Professor Rimmer said.
“The settlements require Volkswagen to spend up to $US10 billion to buyback, terminate leases, and modify affected vehicles, and compensate consumers. Moreover, Volkswagen would have to spend $4.7 billion to mitigate the pollution’ from those cars and invest in green vehicles.
“In addition to the historic settlement, Volkswagen will also pay an additional $US86 million in civil penalties to the state of California.
“Californian Attorney-General Kamala Harris said of the result: ‘we must conserve and protect our environment for future generations and deliver swift and certain consequences to those who break the law and pollute our air…this additional settlement sends an unequivocal message to Volkswagen and any other automaker that California will aggressively enforce our robust consumer and environmental protection laws.”
Professor Rimmer added there had been ongoing investigations in the European Parliament of Volkswagen over Dieselgate.
“A number of countries around the world are seeking to take action against Volkswagen over Dieselgate. As well as civil actions, there has been discussion of criminal remedies,” he said.
“The Dieselgate controversy shows how greenwashing has evolved and intensified in recent years. The Volkswagen controversy will provide an important test of the strength of consumer laws in tackling misleading claims by business about carbon emissions around the world.”
Media contact:
Amanda Weaver, QUT Media, 07 3138 1841, amanda.weaver@qut.edu.au
After hours: Rose Trapnell, 0407 585 901, media@qut.edu.au
