Undertaking date

Undertaking type

s.87B undertaking


Section 87B of the CCA


New car retailing

Company or individual details

  • Name

    Volkswagen Group Australia Pty Ltd


    093 117 876


The Australian Competition and Consumer Commission (ACCC) has accepted a court enforceable undertaking from Volkswagen Group Australia Pty Ltd (Volkswagen).

Volkswagen offered this undertaking in response to the ACCC’s concerns that car manufacturers’ policies and procedures, including complaint handling systems and compliance programs, may not provide a balanced focus on consumers’ entitlements arising from the Consumer Guarantees under the Australian Consumer Law (ACL), compared to entitlements arising from the Manufacturer’s Warranties. This may result in misleading representations being made to consumers about their rights under the ACL and make it difficult for consumers to enforce their rights if they experience problems with their vehicle.

Volkswagen has provided the ACCC with a section 87B undertaking that it will:

  • engage an independent expert to review relevant consumer complaints received in the 12 months prior to the date of the undertaking;
  • engage an independent expert to review its complaint handling system to ensure that consumer rights are accurately considered, and consumers are provided with written reasons when a remedy they request is not provided;
  • engage an independent expert to review its consumer law compliance program;
  • engage an independent expert to review its dealer training material and the Dealer Warranty Handbook to ensure that they comply with the ACL;
  • update its website to include information about how consumers can make a complaint and how that complaint will be handled and resolved;
  • develop an online tool to enable consumers to search by VIN and obtain information about technical issues with their vehicles and available fixes;
  • email consumers within 30 day of purchasing a vehicle about their consumer guarantee rights;
  • implement a policy whereby a consumer is entitled to a remedy if they experience a defect within 60 days of purchasing their new vehicle that causes it to become immobile and no longer drivable;
  • provide clarity around the start date of the Manufacturer’s Warranty;
  • review its hard copy and online logbooks for representations that may contravene the ACL;
  • undertake a mystery shopping program to monitor compliance with the undertaking;
  • provide annual reports to the board on compliance with the undertaking.