The Australian Federal Court rejects the Competition Authority’s dieselgate settlement and imposes a record $125 million fine on an automobile manufacturer for breaches of national consumer law (Volkswagen)

What you need to know The Court imposed a penalty amount AUD 50 million higher than had been agreed between the parties, bucking the recent trend of the Court reducing penalties proposed by the ACCC. The AUD 125 million penalty was calculated under the old ACL penalty regime where the maximum penalty was AUD 1.1 million per breach. Now that the penalties available under the ACL have increased substantially - the higher of AUD 10 million, three times the benefit obtained or, if this cannot be determined, 10% of the annual turnover of the body corporate – this decision will likely embolden the ACCC to seek considerably higher penalties in contested matters and negotiated settlements moving forward. Background In Federal Court proceedings brought by the ACCC, Volkswagen

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Melissa Fraser, Peter Armitage, Ross Zaurrini, Alyssa Phillips, The Australian Federal Court rejects the Competition Authority’s dieselgate settlement and imposes a record $125 million fine on an automobile manufacturer for breaches of national consumer law (Volkswagen), 20 December 2019, e-Competitions December 2019, Art. N° 95948

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