OCTOBER 2008

IN THIS ISSUE

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• Sydney Motor Show Exclusive Pictures
• Vehicle Fuel Efficiency Report
• Re-tooling for Climate Change Program
• Export Policies Review
• Holden Settles ACCC Carbon Claims Prosecution
• Franchising Certainty for Motor Vehicle Dealers
• Trade Expert Joins HWL Ebsworth
• Delphi Reorganisation
• New President at Ford Australia
• Chinese Delegations Target Victoria
• Chrysler Sues Consultant for Failure to Identify Low Cost Producers
• Dangers in Redundancies

 

Holden Settles ACCC Carbon Claims Prosecution

The ACCC and GM Holden Ltd (Holden) have settled the case brought by the ACCC against Holden.  It was alleged that Holden had engaged in misleading and deceptive conduct in relation to the advertising of the green credentials of the SAAB range of vehicles which it imports. 

The proceeding was settled by consent with orders being made by the Federal Court on 18 September 2008.  The Court declared that the relevant advertisements were likely to mislead or deceive in contravention of section 52 of the Trade Practices ACT 1974 (Cth) (Act) and represented that SAAB motor vehicles had performance characteristics or benefits that they do not have in contravention of section 53(c) of the Act.

Holden agreed to:

1. refrain from re-publishing the advertisements; and
2. within three months train all SAAB marketing staff in relation to misleading or deceptive conduct in the context of “green” marketing claims.

The ACCC prosecution arose following a series of newspaper and magazine advertisements which ran in July and August last year in which Holden made a number of claims about the environmental impact of SAAB vehicles, including:

1. every SAAB is green;
2. SAAB is carbon emissions neutral across its entire range; and
3. that SAAB would plant 17 native trees in the first year following the purchase of a SAAB vehicle, as a carbon offset.

The ACCC alleged that these advertisements were misleading and deceptive in contravention of sections 52 and 53(c) of the Act because:

1. there would be a net release of carbon dioxide into the atmosphere by the operation of any vehicle in the SAAB range;
2. planting 17 native trees would not provide a carbon dioxide offset for any period other than a single year’s operation of any vehicle in the SAAB range; and
3. SAAB vehicles do not have any attributes which contribute to reduced carbon dioxide emissions by those vehicles compared with SAAB vehicles supplied prior to the advertisement.

Since the commencement of this proceeding the ACCC has published a detailed guidance paper in relation to carbon claims in marketing.  This sets out a blueprint for how companies can avoid breaching the Act when making such claims.  This guidance paper was reviewed in our August edition of the Automotive Industry Update.  The review can be accessed at http://www.climatechange.gov.au/greenpaper/index.html