The Australian Competition and Consumer Commission (ACCC) wants to haul the Australian arm of Mercedes before the federal court, citing the OEM’s failure to “use attention-capturing, high-impact language to avoid consumers ignoring recall notices”.
By doing this, the ACCC alleges the OEM contravened the Takata compulsory recall notice “by minimising the risks associated with defective Takata airbags”.
Mercedes-Benz Cars Australia told GoAutoMedia Premium that “the recall process overseen by the ACCC did not require affected Mercedes-Benz vehicles to be off the road or owners to cease driving them until the repair was undertaken”.
“As the recall notice did not require Mercedes-Benz owners to cease driving their vehicles, Mercedes-Benz Australia does not understand how saying an owner could continue to drive their vehicle could be a breach of the recall notice,” it said.
The OEM said its vehicles “do not contain Takata ‘Alpha’ airbags as identified as critical by the ACCC”.
But the ACCC alleges that on at least 73 instances between July 2018 and March 2020, Mercedes-Benz call-centre staff “made representations” to consumers by phone or email that the car-maker was undertaking the recall as “a precaution” and that “it was still okay (or safe) to drive vehicles that were over six years old; or there had been no incidents, accidents, injuries or deaths caused by Beta airbags, either in Mercedes-Benz vehicles, or at all”.
ACCC deputy chairperson Delia Rickard said in a statement that “it was a very important part of the compulsory recall that consumers were made aware in all communications from vehicle manufacturers of the risks of serious injury or death from defective Takata airbags, and the importance of having these airbags replaced as soon as possible”.
“We allege that Mercedes-Benz exposed consumers to the risks of serious injury or death because it used language which minimised these risks, and gave the impression that the recall was precautionary and that there was no urgency in having the airbags replaced,” Ms Rickard said.
Mercedes-Benz Australia said it was “committed to ensuring the safety of its customers and takes its compliance with its Australian Consumer Law obligations seriously”.
“Mercedes-Benz Australia has cooperated with the ACCC throughout its investigation and has taken steps to improve its internal systems and call centre operations to address ACCC concerns.
“To date, the affected airbags have been replaced in 97.7 per cent of the Mercedes-Benz vehicles involved in the recall.
Delia Rickard
“However, there are owners who have not brought their vehicles in for a complimentary airbag replacement. Mercedes-Benz Australia continues to contact the owners of the outstanding vehicles for the purpose of booking airbag replacements as soon as possible.”
The ACCC said that in communications between Mercedes-Benz Cars Australia’s call centre and consumers, Beta airbags were implied to be free from problems.
But the watchdog said “there have been incidents in Australia and overseas involving Beta airbags”.
These included one incident in Australia “that resulted in a fatality and another resulting in very serious injuries to the driver”.
“The ACCC is also aware of reported mis-deployments overseas of Takata airbags fitted in Mercedes vehicles,” it said.
“It was a very important part of the compulsory recall that consumers were made aware in all communications from vehicle manufacturers of the risks of serious injury or death from defective Takata airbags, and the importance of having these airbags replaced as soon as possible,” Ms Rickard added.
“We allege that Mercedes-Benz exposed consumers to the risks of serious injury or death because it used language which minimised these risks, and gave the impression that the recall was precautionary and that there was no urgency in having the airbags replaced.”
Under the Takata airbag recall, suppliers were required to recall and replace defective Takata airbags by December 31, 2020, and develop and implement a plan to communicate with consumers to maximise replacement of these airbags.
The ACCC said that as of July 2021, car manufacturers have successfully recalled 99.9 per cent of vehicles affected by these airbags.
The ACCC’s recall notice applies to affected Takata airbag inflators, commonly known as Alpha or Beta (also known as non-Alpha) airbags.
“Globally, ruptures of defective Takata airbags have been associated with approximately 33 deaths and over 350 injuries,” the ACCC said in its notice.
“In Australia there has been one death and one serious injury attributed to the mis-deployment of airbags subject to the compulsory recall. Both of these incidents involved Beta airbags.”
The ACCC will now take the matter to court. It is seeking declarations, pecuniary penalties, an order requiring a product recall compliance program, and costs.
By Neil Dowling
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