The Australian Competition and Consumer Commission (ACCC) has initiated legal proceedings against LDV Automotive Australia, a prominent Chinese car manufacturer. The ACCC accuses the company of engaging in misleading advertising regarding the durability of its utes and vans, particularly the T60 and G10 models, which were said to be “durable and tough” and suitable for off-road conditions. In contrast, the ACCC claims that these vehicles displayed a tendency to rust or corrode within just five years of manufacture.
Amidst this controversy, LDV Australia has expressed its intent to contest the ACCC’s allegations in court. The brand’s advertisements, which featured their T60 utes navigating muddy terrain and streams with slogans like “turns the toughest tracks into a walk in the park,” are cited as particularly deceptive by the ACCC. The agency also highlighted claims such as “Who needs roads when you’re driving a T60?” as part of their misleading marketing.
The ACCC’s allegations rest on data indicating that over 5,000 consumer complaints regarding rust issues have been lodged against the company between 2018 and 2024. The ACCC contends that LDV knowingly misrepresented the durability of its models while being aware of their susceptibility to rust, which lowered the vehicles’ value and misled consumers regarding their purchasing decisions.
ACCC Chair Gina Cass-Gottlieb emphasised that LDV’s actions potentially harmed consumers by depriving them of making informed choices, causing financial loss due to reduced vehicle value. The ACCC intends to pursue penalties and compensation for affected consumers during the proceedings in the Federal Court.
LDV Australia’s general manager, Dinesh Chinnappa, acknowledged the legal action, expressing disappointment at the escalation after 18 months of discussions with the ACCC aimed at addressing their concerns. He reiterated the company’s commitment to adhering to Australian Consumer Law and their readiness to defend against the allegations in court.
In summary, the situation reflects ongoing tensions between consumer rights protections and automotive manufacturers, highlighting the importance of accurate advertising in maintaining public trust.