AUSTRALIA’S corporate watchdog has started federal court proceedings against Ateco Automotive for allegedly making misleading representations to consumers about the durability and suitability of particular models of LDV-branded vehicles.

The Australian Competition and Consumer Commission (ACCC) said these representations were in breach of the Australian Consumer Law. 

In a statement, the ACCC said it alleges that those vehicles “had a propensity to rust or corrode within five years of being manufactured.”It is alleged that during various periods of time between approximately April 23, 2019 and November 30, 2024, Ateco Automotive (trading as LDV Automotive Australia) “made misleading representations to consumers 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.”

It said LDV made these alleged representations in advertisements published on various mediums including its website, television, radio, Facebook and Instagram, which often portrayed the vehicles on beaches; near lakes, rivers or other pooled water; or on unsealed roads, or in dirt or gravel terrain.

“The ACCC alleges the relevant T60 and G10 vehicle models had a propensity to develop rust or corrosion within the first five years from the date of manufacture, and therefore the advertised LDV vehicles, including those in which rust or corrosion occurred, were not durable and tough,” the commission said in its statement.

“It is also alleged that the propensity to rust, which increased if the vehicles were used in, near or on certain terrains, made the advertised vehicles, including the vehicles in which rust occurred, not suitable for use in, near, or on, the advertised terrains.”

T60

ACCC chair Gina Cass-Gottlieb said: “A new car is a significant financial purchase, and consumers rightfully expect that the vehicle they purchase will live up to the quality and uses that it was advertised to include.”

The ACCC also alleges that in advertising a 10-year anti-corrosion warranty between April 23, 2019 and August 31, 2020, LDV made representations to consumers that the relevant T60 vehicle models did not have a material risk of developing rust or corrosion in the first 10 years of manufacture. 

“The ACCC alleges that these representations were false or misleading due to the propensity for those vehicles to develop rust or corrosion,” it said.

ACCC chair Gina Cass-Gottlieb

“In addition or instead, the ACCC alleges that, by April 2019, LDV was aware that rust or corrosion issues were prevalent in the T60 and G10 vehicle models within the first five years of being manufactured, and that the representations alleged in the case were false or misleading because LDV did not have a reasonable basis to make the representations,” it said.

“Between approximately January 2018 and November 2024, LDV received more than 5000 consumer complaints regarding rust or corrosion in its T60 and G10 vehicle models, usually via LDV dealerships.”

Ms Cass-Gottlieb said that the ACCC alleges “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.”

G10

“As a result, we allege that LDV’s conduct is likely to have caused harm to affected consumers, including because 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.

In response to questions by GoAutoNews Premium, LDV Australia said that “it acknowledges the announcement today by the Australian Competition and Consumer Commission in relation to the commencement of proceedings against LDV Australia in the Federal Court of Australia.” 

In a statement to GoAutoNews Premium, LDV Australia’s general manager, Dinesh Chinnappa, said: “For 18 months LDV Australia has been engaged in good faith discussions with the commission in an attempt to resolve its concerns, and to provide remedies to consumers. It is disappointing this process has ended in these legal proceedings. 

“LDV Australia takes its obligations under Australian Consumer Law seriously, and we look forward to defending the ACCC’s allegations in court.” 

The ACCC said that examples of the allegedly misleading statements used in LDV’s advertisements included:

• “The T60 is up to any challenge you care to take on – work or play, on-road or off… It turns the toughest tracks into a walk in the park.”
• “The T60 Ute has the tough build and all the robust features needed to take you anywhere, be it work or play.”
• “Who needs roads when you’re driving a T60?”
• “Why take a long walk on the beach when you could take a drive in the LDV T60 Ute?”
• “G10s are built to stand up to the everyday and so much more.”