The Australian Competition and Consumer Commission (ACCC) accuses LDV Automotive Australia, known for producing utes and vans, of falsely promoting certain models as “durable and tough,” suggesting they were fit for off-road and extreme conditions.

Instead, the ACC alleges the brands’ T60 and G10 models ” had a propensity to rust or corrode within five years of being manufactured”.

“We contend that even after being aware of the vehicles’ tendency to rust, LDV continued to assert over several years that the T60 and G10 models were durable and suitable for diverse terrains,” stated Gina Cass-Gottlieb, ACCC Chair.

“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.”