The world’s largest car manufacturer Volkswagen (VW) has reportedly announced to have signed a voluntary court-enforceable undertaking with the Australian Competition & Consumer Commission (ACCC) to abide by the warranty claims specified in the Australian Consumer Law (ACL). As per the terms of the undertaking, VW would replace faulty vehicles within 60 days of purchase.
Under its 60-day policy, it will offer total refunds or replacements to its customers if a fault renders a vehicle undrivable within 60 days of its purchase. The company reportedly stated that the undertaking reinforces its existing customer obligations.
ACCC Commissioner, Sarah Court reportedly stated that the ACCC is pleased with VW’s decision to offer remedies to its customers which in some cases goes above and beyond the legal requirements.
According to a press release by ACCC, the watchdog acknowledged that the VW’s 60-day policy goes beyond the current ACL obligations and reflects a recommendation of ACL Review. The press release further elucidated that the undertaking applies only to VW branded cars and not to other Volkswagen group sub-brands like Porsche or Audi.
Reportedly, VW’s decision to sign the undertaking exerts further pressure on Toyota and Mazda – Australia’s two topmost brands – to enter a similar arrangement with the ACCC.
According to reports, some of the other leading car manufacturers in Australia have also signed similar agreements with the ACCC to adhere to the ACL. Brands like Holden and Hyundai are reportedly said to have signed similar agreements with ACCC.
Ford has signed a similar undertaking with the ACCC after being fined $10 million for its unethical conduct pertaining to a callback of faulty automatic transmissions.
A broader review of the Australian automotive industry was undertaken after ACCC investigated into customer complaints against Chrysler-Jeep in 2015. The undertakings with ACCC are reportedly said to be de-facto versions of the lemon laws currently enforced in the U.S.