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Australian Competition and Consumer Commission v Volkswagen Aktiengesellschaft - decision

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Australian Competition and Consumer Commission v Volkswagen Aktiengesellschaft - appeal

Filing Year For Action

The Australian Competition and Consumer Commission (ACCC) filed against Volkswagen Aktiengesellschaft (VWAG) regarding misleading conduct in relation to the emission control systems of its diesel vehicles sold in Australia. VWAG admitted that its "Relevant Vehicles" contained "Two Mode Software" that caused the exhaust gas recirculation system to operate differently during emissions testing compared to normal driving conditions, leading to lower NOx emissions during testing. The ACCC initiated proceedings, and a settlement was proposed with VWAG agreeing to pay a pecuniary penalty of $75 million. However, Justice Foster of the Federal Court deemed this penalty manifestly inadequate for specific and general deterrence, citing the deliberate and dishonest nature of the conduct, the deception of regulatory authorities and consumers, and the pursuit of profit. Consequently, Justice Foster imposed a higher penalty of $125 million. VWAG appealed this decision, but the Full Court of the Federal Court dismissed the appeal, finding that the primary judge's exercise of discretion did not miscarry and the imposed penalty was not excessive. The Full Court affirmed the principles guiding the determination of agreed penalties, emphasizing that the court must be persuaded that the penalty is appropriate and is not bound by the parties' agreement.


Australian Competition and Consumer Commission v Volkswagen Aktiengesellschaft

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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

Groups  of people who are adversely affected by climate change or the response to it

A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

The management and allocation of funds, assets and investments to meet various objectives

Any compulsory, unrequited payment to the government levied on corporations or individuals. This can be for environmental reasons, such as introducing a Carbon tax to set a price that emitters must pay for the greenhouse gases they emit.

People whose sexual orientation, gender identity, or gender expression differs from the majority or societal norms

This sector includes firms and individuals offering specialised expertise in fields such as law, accounting, consulting, science and engineering.

Activities of businesses and institutions that provide financial services and products to individuals and organisations.

The activities of industries that transforms raw materials into finished goods through industrial processes.

Air pollution involves harmful contaminants in the air, affecting both indoor and outdoor environments. It can lead to health issues like respiratory diseases and heart problems, and climate impacts such as global warming. Pollutants can damage plants, trees, habitats, and water bodies like rivers and lakes.

Activities that provide lodging, food, and entertainment services to guests, including hotels, restaurants, and resorts.

Activities of industries that extract natural resources, such as mining, oil, and gas, for commercial use.

Financial support to help individuals manage the effects of unexpected events, securing their livelihoods and increasing the resilience of people and businesses to the changing climate. It’s especially vital in developing regions where everyday risks, climate-related weather extremes, or crop failures can push people into poverty. Without insurance, people may have to resort to selling assets or cutting consumption to cope with losses.

Oil is a combustible liquid fossil fuel composed mainly of hydrocarbons, occurring as crude oil and refined into petroleum products such as petrol, diesel and kerosene.

Actions or measures to adapt freshwater systems to climate change.

People who are less able to respond to the effects of climate change due to having limited financial or physical assets

People who have left their homes, whether through force, voluntarily, or a mixture of both

Either money or something of monetary value is transferred between two or more organisations, people or countries.

Social protection systems consist of policies that help people manage social risks in order to prevent poverty and maintain decent incomes and living standards

Activities that involve planning, designing and building infrastructure, residential, and commercial structures.

This sector involves the distribution, treatment, and conservation of water resources.

This sector provides communication services, software development, and IT solutions.

Actions or measures to adapt freshwater, coastal and marine systems to climate change.

Codes and standards are regulatory instruments that specify minimum standards to protect health and safety. This ranges from performance standards, which prescribe outcomes while allowing flexibility to achieve compliance, to the more prescriptive approach of technology-specific standards.

This sector involves activities that impart knowledge and skills to individuals, including formal schooling, vocational training and educational support.

Australian Competition and Consumer Commission v Volkswagen Aktiengesellschaft - appeal

Policy instrument

Risk

Impacted group

Just transition

Renewable energy

Fossil fuel

Economic sector

Adaptation/resilience

Finance