Volkswagen AG

In the matter of Volkswagen AG, the Federal Court of Australia, presided over by Justice Iain Thompson, considered a dispute concerning alleged contraventions of the *Australian Consumer Law* (ACL). The applicant, a consumer, brought proceedings against the respondent, Volkswagen AG, alleging misleading and deceptive conduct in relation to the sale of certain vehicles. The core of the dispute revolved around representations made about the emissions compliance of diesel vehicles.

The primary legal issue before the Court was whether Volkswagen AG had engaged in conduct that was misleading or deceptive, or likely to mislead or deceive, in contravention of section 18 of the ACL. This involved determining whether the representations made by Volkswagen AG regarding the emissions control systems of its diesel vehicles were false or misleading, and whether consumers relied on these representations to their detriment. The Court also considered the scope of Volkswagen AG's liability for the conduct of its related entities.

Justice Thompson's reasoning focused on the evidence presented regarding the "defeat device" technology employed by Volkswagen AG in its diesel vehicles. The Court found that the representations made by the company about the environmental compliance of these vehicles were indeed misleading and deceptive, as they did not accurately reflect the vehicles' performance and emissions under real-world driving conditions. The Court applied established principles of Australian consumer law, emphasizing the importance of truthful and accurate representations to consumers and the broad scope of section 18 of the ACL.

The Court ultimately found in favour of the applicant, determining that Volkswagen AG had contravened the ACL. Orders were made requiring Volkswagen AG to compensate the applicant for losses suffered as a result of the misleading conduct.