Australia sues Volkswagen over diesel emissions claims

Australia's consumer watchdog said Thursday it was suing German carmaker Volkswagen and its local subsidiary for lying to customers about the levels of toxic gases emitted from their cars.

The Australian Competition and Consumer Commission (ACCC) accused the company of misleading consumers over standards and emission levels, while selling more than 57,000 cars in the country over a five-year period.

The company has previously admitted installing so-called defeat devices in diesel vehicles which manipulated emissions during lab tests.

Volkswagen Australia marketed their cars "as being environmentally friendly, clean burning, low emission and compliant with stringent European standards when this was not the case under normal driving conditions," the ACCC said in a statement.

It is seeking declarations, pecuniary penalties, corrective advertising, findings of fact and costs, the statement said.

"These allegations involve extraordinary conduct of a serious and deliberate nature by a global corporation and its Australian subsidiary misleading consumers and the Australian public," said ACCC chairman Rod Sims.

The latest court action adds to an expensive legal fallout for the world's number two carmaker, which is already facing class action lawsuits in Australia and around the world over alleged emissions fraud.

In Australia, Bannister Law firm is seeking more than 100 million Australian dollars (75 million US dollars) from the company, as well as replacement costs for more than 90,0000 vehicles.

Last year, Volkswagen Australia recalled 100,000 of its vehicles sold in the country to remove the device.

Last update: Thu, 01/09/2016 - 12:01

More from Business

US unemployment rate dips to 9-year low

The US unemployment rate fell in November to 4.6 per cent, a nine-year low, the Bureau of Labour Statistics said...

Chinese firm building full-size Titanic replica for tourists

Construction has begun on the world's first full-size replica of the Titanic in China, a country that fell in love...

Erdogan calls on Turks to sell dollars and buy lira and gold

President Recep Tayyip Erdogan urged Turkish citizens on Friday to sell their dollars and buy gold and lira, as the...

EU agrees to let Germany introduce road toll, staving off legal feud

The European Commission has approved Germany's plan to introduce a road toll on its motorways, top transport...

Danish container shipping giant Maersk Line to buy German rival

Global shipping giant A/S Maersk Line of Denmark on Thursday announced plans to grow its business by buying German...