Placeholder Content Image

High Court decision on $125 million fine for Volkswagen is a warning to all greenwashers

<p>The High Court of Australia has today refused to hear Volkswagen’s appeal against the record A$125 million fine imposed on it for deliberately deceiving regulators and customers about the environmental performance of its cars.</p> <p>The $125 million fine is the largest penalty ever imposed on a company in Australia for misleading consumers. It relates to the so-called “dieselgate” scandal, by which the German car company used secret software to beat emissions standards and tests in multiple countries.</p> <p>This is a significant win for the <a rel="noopener" href="https://www.accc.gov.au/media-release/high-court-denies-volkswagen-leave-to-appeal-125-million-penalty" target="_blank">Australian Competition and Consumer Commission</a> in its ongoing battle against “greenwash”, by which companies make false environmental claims to mislead consumers.</p> <p><a rel="noopener" href="https://journals.sagepub.com/doi/full/10.1177/1050651919874105" target="_blank">Research shows</a> greenwashing harms the market for environmentally friendly products. Without being able to distinguish between genuine and dubious claims, consumer cynicism about all claims increases.</p> <p>The <a rel="noopener" href="https://www.australiancompetitionlaw.org/legislation/provisions/acl18.html" target="_blank">Australian Consumer Law</a> adequately prohibits greenwashing claims through its provisions covering false and misleading practices. But this evidence the consumer watchdog is enforcing these laws, and that the courts are upholding them, will build confidence that environmental claims can be trusted.</p> <p><strong>Background to the ‘dieselgate’ case</strong></p> <p>The ACCC initiated Federal Court proceedings against Volkswagen in September 2016, a year after the US Environmental Protection Agency revealed the car company had used “defeat” software in diesel vehicles since 2009 to produce lower greenhouse gas emissions during “laboratory” tests.</p> <p>This software shut off during road use, meaning the cars performed better, but then produced nitrogen oxide pollution <a rel="noopener" href="https://www.bbc.com/news/business-34324772" target="_blank">up to 40 times that permitted</a> by US law.</p> <p><img src="https://images.theconversation.com/files/431640/original/file-20211112-19-bb47po.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="Volkswagen's software ensured cars produced lower nitrogen oxide emissions when being tested." /> <em><span class="caption">Volkswagen’s software ensured cars produced lower nitrogen oxide emissions when being tested.</span> <span class="attribution"><span class="source">Shutterstock</span></span></em></p> <p>Volkswagen had used its software globally. The ACCC alleged the car maker sold 57,000 cars with these defeat devices in Australia between 2011 and 2015.</p> <p>Volkswagen initially fought the case by the ACCC, but <a rel="noopener" href="https://www.smh.com.au/business/consumer-affairs/judge-warns-that-vw-fine-will-be-multiples-of-75m-imposed-by-accc-20191016-p531be.html" target="_blank">in 2019 agreed to settle</a> for a fine of $75 million (and $4 million in court costs).</p> <p>When this was taken to the Federal Court for ratification (approval) the judge, Justice Lindsay Foster, rejected the deal as “outrageous”. He called the “agreed statement of facts” about the harm caused “<a rel="noopener" href="https://www.afr.com/companies/transport/outrageous-judge-slams-accc-over-vw-deal-20191016-p5313c" target="_blank">a bunch of weasel words</a>”. In his ruling in <a rel="noopener" href="http://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/cth/FCA/2019/2166.html" target="_blank">December 2019</a> he doubled the penalty to $125 million.</p> <p>Volkswagen appealed this judgement to the full bench of the Federal Court (the equivalent of a court of appeal), arguing it was manifestly excessive. In its ruling (in April 2021) the full bench disagreed and <a rel="noopener" href="http://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/cth/FCAFC/2021/49.html" target="_blank">upheld the A$125 million penalty</a>.</p> <p>This led to Volkswagen appealing to the High Court (Australia’s ultimate court of appeal). Today it refused “special leave” (permission to bring the whole case) to challenge the ruling and the large penalty. Which means the A$125 million fine stands.</p> <p><strong>This sends a strong message</strong></p> <p>This decision will send a very strong message to other manufacturers and sellers of products making environmental claims.</p> <p>The Australian Consumer Law’s provisions against greenwashing are contained in <a rel="noopener" href="https://www.australiancompetitionlaw.org/legislation/provisions/acl18.html" target="_blank">Section 18</a> of the act, dealing with misleading or deceptive conduct.</p> <p>As the market for “green products” has expanded over the past few decades, so too has the temptation for unsavoury producers and marketers to make misleading statements.</p> <p>In response, some consumer groups and activists have demanded new laws to prevent greenwash. But <a rel="noopener" href="http://www.austlii.edu.au/au/journals/BondLRev/2012/2.pdf" target="_blank">my research</a> with Marina Nehme (now associate professor of corporate law at UNSW) led us to to the view the existing laws actually cover all the relevant situations.</p> <p>The High Court decision today demonstrates this. There are hundreds of examples of the consumer watchdog successfully pursuing greenwashers, but the size of the fine in this case will stand out and serve to deter others.<!-- Below is The Conversation's page counter tag. Please DO NOT REMOVE. --><img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;" src="https://counter.theconversation.com/content/171733/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /><!-- End of code. If you don't see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https://theconversation.com/republishing-guidelines --></p> <p><em><a rel="noopener" href="https://theconversation.com/profiles/michael-adams-18149" target="_blank">Michael Adams</a>, Professor of Corporate Law &amp; Head UNE Law School, <a rel="noopener" href="https://theconversation.com/institutions/university-of-new-england-919" target="_blank">University of New England</a></em></p> <p><em>This article is republished from <a rel="noopener" href="https://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a rel="noopener" href="https://theconversation.com/high-court-decision-on-125-million-fine-for-volkswagen-is-a-warning-to-all-greenwashers-171733" target="_blank">original article</a>.</em></p> <p><em>Image: Getty Images</em></p>

Money & Banking

Placeholder Content Image

Volkswagen halt production of the last version of Beetle model

<p><span style="font-weight: 400;">Volkswagen has halted production of the last version of the Beetle model at its plant in Puebla, Mexico.</span></p> <p><span style="font-weight: 400;">The halting of production suggests that it’s the end of the road for a vehicle that has symbolised a range of things over the eight decades it’s been in production.</span></p> <p><span style="font-weight: 400;">The car was first built in 1938 and has been a part of Germany’s darkest hours as a never-realised Nazi prestige project.</span></p> <p><span style="font-weight: 400;">After the war, it was a symbol of Germany’s post-war economic and rising middle class prosperity.</span></p> <p><span style="font-weight: 400;">The car continues to remain a landmark in design, and some would argue it’s as recognisable as the Coca-Cola bottle.</span></p> <p><span style="font-weight: 400;">The car has gone through a design change over the years and in 2012, the design was made a bit sleeker from the older style of the Beetle.</span></p> <blockquote class="twitter-tweet" data-lang="en-gb"> <p dir="ltr">Evolution of the Volkswagen Beetle, 1951-1990. <a href="https://t.co/yJjsy5Xw9z">pic.twitter.com/yJjsy5Xw9z</a></p> — Life in Moments (@historyinmoment) <a href="https://twitter.com/historyinmoment/status/1145863939026292737?ref_src=twsrc%5Etfw">2 July 2019</a></blockquote> <blockquote style="background: #FFF; border: 0; border-radius: 3px; box-shadow: 0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width: 540px; min-width: 326px; padding: 0; width: calc(100% - 2px);" class="instagram-media" data-instgrm-captioned="" data-instgrm-permalink="https://www.instagram.com/p/B01POXDhSEr/" data-instgrm-version="12"> <div style="padding: 16px;"> <div style="display: flex; flex-direction: row; align-items: center;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 40px; margin-right: 14px; width: 40px;"></div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 100px;"></div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 60px;"></div> </div> </div> <div style="padding: 19% 0;"></div> <div style="display: block; height: 50px; margin: 0 auto 12px; width: 50px;"></div> <div style="padding-top: 8px;"> <div style="color: #3897f0; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: 550; line-height: 18px;">View this post on Instagram</div> </div> <p style="margin: 8px 0 0 0; padding: 0 4px;"><a style="color: #000; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px; text-decoration: none; word-wrap: break-word;" rel="noopener" href="https://www.instagram.com/p/B01POXDhSEr/" target="_blank">.. you make my heart smile ✨ - 📷 &gt; @traw6c - - - - - #vw #volkswagen #girlscar #vwgirl #austria #österreich #beetle #vwbeetle #yellowcar #volkswagenbeetle #love #volkswagenlove #volkswagenösterreich #vag #vag_cars #photo #photooftheday #hochwieeinbus #lieblingsbus #bug #nature</a></p> <p style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; line-height: 17px; margin-bottom: 0; margin-top: 8px; overflow: hidden; padding: 8px 0 7px; text-align: center; text-overflow: ellipsis; white-space: nowrap;">A post shared by <a style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px;" rel="noopener" href="https://www.instagram.com/m.araa98/" target="_blank"> T A M A R A 🌹</a> (@m.araa98) on Aug 6, 2019 at 11:01am PDT</p> </div> </blockquote> <p><span style="font-weight: 400;">The last of the 5961 Final Edition Beetle is headed for a museum after the ceremonies signal the end of production.</span></p>

Money & Banking

Placeholder Content Image

Huge security flaw discovered in millions of vehicles

<p>Owners of cars constructed by a popular automobile manufacturer have been warned of a huge security flaw present in millions of vehicles built between 1995 and 2015.</p> <p>A paper published by researchers at the University of Birmingham found a low-tech way hackers could gain access to cars made by VW group brands Volkswagen and Audi.</p> <p>The researchers used an audio frequency technique to ‘eavesdrop’ on the remote keyless access keys of the car, and in turn mimic the signal with ‘cheap technical devices’.</p> <p>It’s believed over 100 million vehicles worldwide could be vulnerable to an attack.</p> <p>The papers stated, “It is conceivable that all VW Group (except for some Audi) cars manufactured in the past and partially today rely on a 'constant-key' scheme and are thus vulnerable to the attacks.”</p> <p>Do you own a Volkswagen or an Audi? Do you think enough security measures are taken these days to protect our vehicles from these sort of threats?</p> <p>Let us know in the comments.</p> <p><strong>Related links:</strong></p> <p><span style="text-decoration: underline;"><em><a href="/news/news/2016/08/beautiful-birthday-gift-brings-grandma-to-tears/"><strong>Beautiful birthday gift brings grandma to tears</strong></a></em></span></p> <p><span style="text-decoration: underline;"><em><a href="/news/news/2016/08/car-salesman-rescues-elderly-woman-after-she-mistakenly-calls-him/"><strong>Car salesman rescues elderly woman after she mistakenly calls him</strong></a></em></span></p> <p><span style="text-decoration: underline;"><em><a href="/news/news/2016/07/baby-fights-for-control-of-car-radio/"><strong>Adorable baby fights for control of his mum’s car radio</strong></a></em></span></p>

News

Placeholder Content Image

Couple relive 60’s road trip in 56-year-old Volkswagen Beetle

<p>When Ivan and Beth Hodge were bitten by the travel bug 56 years ago, they went out and bought a Beetle.</p> <p>It was 1960 when the newlywed couple, who were living in London at the time, purchased the Volkswagen for £439 ($840), and decided to drive it all the way home to New Zealand.</p> <p>"We were just adventurous," Ivan said.</p> <p>"It was what we could afford. The car was perfect for us."</p> <p>With their possessions strapped to the roof-racks, they set off across Europe, the Middle East, and into the Asian subcontinent, before hopping on a cargo ship in Kolkata, India, bound for Auckland.</p> <p>For much of the journey, they were travelling into the unknown. Their only form of communication with family back home was through letters, which they collected at post offices in Istanbul, Tehran and Pakistan.</p> <p>"We weren't up to date with the news because we didn't have a telephone. We didn't really know what the hell was going on in the world," Ivan said.</p> <p>"We were conscious of communism. We were fearful of it. We really didn't need to be as fearful, but that's the way it had been built up."</p> <p>Beth added: "I think a lot was based on what we had read or heard, and a lot was unfounded. Really, it was a very easy trip for us."</p> <p>Thirty-five years later, Ivan and Beth dusted off the Beetle to retrace their original journey, which has been documented in a book, For Love and a Beetle.</p> <p>This time they had a different perspective of the world, as well as a mobile phone and a laptop.</p> <p>"Driving into Eastern Turkey was a risky area because there was a war," Ivan said.</p> <p>"We were warned not to drive at night, in case we broke down and were taken hostage.</p> <p>"The Embassy said 'don't go', but they always say that, don't they?"</p> <p>Once again, the trusty old Beetle delivered Ivan and Beth safely home.</p> <p>Since then there has been no stopping the couple, who are based in Sydney and, now in their 80s, continue to travel regularly.</p> <p>"Every year we're away somewhere. We just love travelling anywhere," said Beth.</p> <p>Ivan said: "It's not high-class travel. It's travel with the best available. Modest transport, self-catering - we're not going to fancy restaurants. It's all affordable stuff. Anyone can do it."</p> <p>The pair are now embarking on one last expedition in the Beetle - a trip around the North Island, before the car will retire at Auckland's Museum of Transport and Technology.</p> <p>"It was a concern to us what we were going to do with it, but it's lovely to have a good home for it," said Beth.</p> <p>Ivan said it was the "end of an era" for the car, which has been in their lives almost as long as they have been married.</p> <p>"The thing about the Beetle is it's been going for so long and it identifies with so many people," he said.</p> <p>"For many, it's their first car. Many of them have lovely experiences in the Beetle, as we have.</p> <p>"It's been the third person in our marriage."</p> <p>Written by Siobhan Davis. First appeared on <span style="text-decoration: underline;"><strong><a href="http://www.Stuff.co.nz" target="_blank">Stuff.co.nz</a></strong></span>. </p> <p><strong>Related links:</strong></p> <p><span style="text-decoration: underline;"><em><strong><a href="http://www.oversixty.co.nz/travel/travel-tips/2016/02/tips-for-handling-flight-delays/">5 tips for dealing with flight delays</a></strong></em></span></p> <p><span style="text-decoration: underline;"><em><strong><a href="http://www.oversixty.co.nz/travel/travel-tips/2016/02/photo-shows-german-shepherd-enjoying-flight/">German Shepherd really enjoys plane ride</a></strong></em></span></p> <p><span style="text-decoration: underline;"><em><strong><a href="http://www.oversixty.co.nz/travel/travel-tips/2016/02/tips-for-travelling-with-people-that-get-on-your-nerves/">Tips for travelling with people that get on your nerves</a></strong></em></span></p>

International Travel