Australian Competition and Consumer Commission v Ford Motor Company of Australia Limited

In the case between the Australian Competition and Consumer Commission and Ford Motor Company of Australia Limited, the Court examined whether Ford Australia had engaged in unconscionable conduct in contravention of the Australian Consumer Law (ACL). This conduct involved Ford Australia failing to meet the consumer guarantees concerning the quality of motor vehicles sold to consumers through its network of dealers between 1 May 2015 and 29 February 2016. The consumer guarantees in question, introduced in 2011, included the right of customers to reject a vehicle and obtain a refund or replacement if there was a failure to comply with the guarantee that could not be remedied, was a "major failure," or was not remedied within a reasonable time. The Court was required to decide whether Ford Australia's conduct was unconscionable and, if so, to determine the appropriate penalty under the ACL.

The Court determined that Ford Australia's conduct was indeed unconscionable due to its extended duration, the significant number of affected consumers, the economic and non-economic harm caused to customers, and the vulnerability of customers who were at a significant disadvantage in their bargaining position. Ford Australia admitted to a widespread corporate failure to implement adequate processes to appropriately deal with and respond to customer complaints. The Court considered these factors, along with the amount of loss caused, to be critical in establishing the unconscionability of Ford Australia's actions. The Court concluded that the proposed penalty of $10 million was appropriate and adequate, taking into account the nature, extent, and duration of the conduct, and the circumstances in which it occurred. This penalty was deemed sufficient to act as a deterrent against similar conduct in the future.

The Court's final orders included Ford Australia paying a pecuniary penalty of $10 million to the Commonwealth of Australia and a contribution towards the Australian Competition and Consumer Commission's costs of $500,000. The proceedings were dismissed otherwise, and the entry of orders was dealt with under Rule 39.32 of the Federal Court Rules 2011.