Off-Road Claims, On-the-Radar: ACCC Hits the Brakes on LDV Ads

The ACCC has instituted proceedings in the Federal Court against Ateco Automotive Pty Ltd, which operates under various business names including LDV Automotive Australia, alleging breaches of the Australian Consumer Law.

Ateco, headquartered in NSW, has imported vehicles into Australia and New Zealand since 1985 and is the exclusive importer of LDV-branded vehicles in Australia. It distributes a range of commercial and passenger vehicles including the T60 Max Ute, G10 Van, and D90 SUV through a network of 102 dealerships nationwide. LDV vehicle prices typically range from $36,000 to $65,000.

According to the ACCC, between 2018 and 2024, more than 60,000 T60 and G10 models were sold in Australia, generating over $1.5 billion in revenue (excluding GST).

The ACCC alleges that LDV made false or misleading claims about the durability and off-road suitability of certain vehicles with T60 and G10 in their names (excluding the eT60) between 23 April 2019 and 30 November 2024. These claims, featured across various advertising platforms including television, radio, social media, and the LDV website, portrayed the vehicles in rugged environments such as beaches, unsealed roads, and bodies of water.

The ACCC alleges that these vehicles were prone to rust and corrosion within five years of manufacture, rendering them not as durable or suitable for off-road conditions as advertised.

Further, the ACCC claims that from 23 April 2019 to 31 August 2020, LDV advertised a 10-year anti-corrosion warranty on T60 models, implying there was no material risk of rust or corrosion. The ACCC alleges that this too was misleading, given that LDV was aware of widespread corrosion issues as early as April 2019. Between January 2018 and November 2024, LDV received over 5,000 consumer complaints relating to rust or corrosion in the affected models, mostly via its dealerships.

“A new car is a significant financial investment, and consumers rightly expect vehicles to meet the quality and performance standards they’re advertised to have,” said ACCC Chair Gina Cass-Gottlieb.

“We allege that LDV continued to promote its T60 and G10 vehicles as durable and suitable for rugged conditions, despite being aware of widespread rust problems. This conduct is likely to have misled consumers and caused financial harm, including through reduced vehicle value and lost opportunities to make informed purchasing decisions.”

The ACCC is seeking penalties, declarations, consumer redress, costs, and other orders.

EXAMPLES OF ALLEGEDLY MISLEADING STATEMENTS FROM LDV ADVERTISEMENTS INCLUDE:

·      "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.”