A record fine was imposed by Australia’s consumer watchdog over the German auto giant Volkswagen (VW) as part of the deal by the company to settle the scandal of the carmaker over its emission scandal which ripped the company through in 2015.
The fine which is to the tune of $125m Australian Dollar or $86m US Dollar is the highest ever imposed on a corporate by a court in the country for violation of consumer laws of the country.
Ever since the German company had conceded in 2015 that it had used spurious means to evade emissions tests in the US, it has been hit by a series of law suits globally.
Proceedings over VW’s consumer loans have also been launched by Australian regulators.
Charges that VW had not made proper background checks about the living expenses of borrowers or in determining if the loans that it was giving away were unsuitable for them were b brought against the car maker by the Australian Securities and Investments Commission (ASIC).
These allegations were filed in relation to about 49,380 consumer loans advanced by the company to consumers between 2013 and 2016.
The Australian Competition and Consumer Commission (ACCC) had imposed the fine on the company relating to the emissions scandal. The ACCC said that the German company had conceded that it had not disclosed that there was software fitted into some of its cars with the aim of illegally getting past emissions tests in the United States. This case was related to the company importing about 57,000 vehicles that were fitted with the cheating software into into Australia between 2011 and 2015.
Many VW cars had software in diesel engines that could detect when they were being tested, found the US Environmental Protection Agency (EPA) in 2015. The software was designed to temporarily enhance the performance to improve emission results.
Later, the German auto giant had admitted that as many as 11 million cars all over the world had been fitted with the software that reduced readings of emissions in tests.
More than $33bn in fines, recall costs and civil settlements globally have been forced ot be paid by VW.
(Adapted form BBC.com)