ACCC alleges ute brand's claims of 'durable and tough' cars were misleading

Thursday, 24 April 2025 09:48

For from "durable and tough," the ACCC says the cars had a propensity to rust within five years.

Australia's consumer watchdog has launched legal action against a major Chinese car manufacturer, accusing the brand of misleading advertising about the durability of its vehicles.

The Australian Competition and Consumer Commission (ACCC) alleges LDV Automotive Australia, a brand that makes utes and vans, claimed that several of their models were "durable and tough" and that they were suitable for use in off-road terrain and harsh conditions.

Instead, the ACCC alleges the brands' T60 and G10 models " had a propensity to rust or corrode within five years of being manufactured".

In a statement to 9news.com.au, LDV Australia said the company would be "defending the ACCC's allegations in court".

Advertisements from the company that drew the ACCC's attention included images of LDV T60 utes charging through mud, gravel and flowing creeks.

The ACCC alleges LDV's claim that the ute "turns the toughest tracks into a walk in the park" was misleading.

"Who needs roads when you're driving a T60?" was another tag the ACCC alleged was misleading.

"Therefore, the advertised LDV vehicles, including those in which rust or corrosion occurred, were not durable and tough," the ACCC said.

The watchdog said between 2018 and 2024, the company received more than 5000 complaints from customers about the rust.

"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," ACCC Chair Gina Cass-Gottlieb said.

"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 will seek penalties and "consumer redress," among other orders when the case goes before the Federal Court.

LDV Australia general manager Dinesh Chinnappa said the company acknowledged yesterday's announcement of the legal proceedings.

"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," he said.

"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."

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