VW EMISSIONS SCANDAL SHOWS NEED FOR EFFECTIVE DETERRENT

The VW emissions scandal – and the continuing revelations of dodgy testing revealed in media reports this morning – is another example of the need for maximum penalties for anti-consumer conduct to be increased.

 

A number of VW branded cars were recalled due to software designed to ‘game’ emissions and fuel efficiency tests in laboratory conditions, but today’s reports suggest the emissions outputs in real-world conditions are still over four times the allowable Australian limit even after the fix was installed.

 

Labor has long said that the current maximum penalty for misleading and deceptive conduct – only $1.1 million – could just be chalked up to ‘the cost of doing business’ for large multinational companies.

 

Labor led the way in arguing for a tenfold increase in maximum penalties for anti-consumer conduct ahead of the last election, and we warmly welcomed the introduction last fortnight of a bill that would increase maximum penalties to the greater of:

$10 million; or

Three times the value of the benefit obtained by the offence; or

If the value cannot be determined, 10 per cent of the company’s annual turnover.

 

Labor is committed to ensuring that Australian consumers aren’t ripped off, and we have called on the Government to devote some of the revenue from the increased penalties to increasing the Australian Competition and Consumer Commission’s litigation budget, so that it can take more cases of anti-consumer conduct to trial.