LDV to Face Court Over Alleged Misleading Advertising

The Australian Competition and Consumer Commission (ACCC) has initiated Federal Court proceedings with Chinese car brand LDV over allegations of misleading advertising.

The government watchdog claims LDV made misleading representations about its T60 ute and G10 van being “durable and tough” in being suitable for use on the beach and off-road environments.

The electric eT60 ute, D90 SUV, Deliver 9, eDeliver 9, V80 van, Mifa people-mover, and the recently-launched Terron 9 and eTerron 9 utes are not included in the action.

According to the ACCC, the LDV T60 and G10 models “had a propensity to develop rust or corrosion within the first five years from the date of manufacture,” and therefore did not meet customer expectations of being “durable and tough”, as advertised.

The ACCC claims more than 5000 complaints were received, from sales of more than 60,000 for the T60 and G10 over a six-year period.

LDV is also accused of misleading consumers during promotions for its 10-year anti-corrosion warranty – made between 23 April 2019 and 31 August 2020 – despite being aware of the alleged propensity for its vehicles to develop rust or corrosion.

“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,” ACCC Chair Gina Cass-Gottlieb said in a statement to media.

However, CarSauce understands LDV has been working with the ACCC since late 2023 over the allegations to find a resolution to the satisfaction of its customers and authorities.

“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 General Manager Dinesh Chinnappa said in a written statement issued to CarSauce.

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