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ACCC has started proceedings against Ford regarding the company's PowerShift automatic transmission

ACCC alleges Ford has engaged in "unconscionable and misleading or deceptive conduct, and made false or misleading representations in its response to customer complaints".

ACCC has started proceedings against Ford regarding the company's PowerShift automatic transmission

The ACCC alleges that Ford refused to provide refunds or replacement vehicles to owners whose vehicles had undergone multiple repairs, despite obligations made clear in the Australian Consumer Law. (See our story here on what you should do if affected.)



The statement goes on to say that in cases where replacement vehicles were offered, Ford had allegedly only done so on the condition that consumers made a "significant payment" toward the vehicle as part of its “PowerShift Ownership Loyalty Program”.


The ACCC alleges the payment required was, on average, $7000. The ACCC's Federal Court Notice of Filing alleges that, as of July 2016, more than 800 customers had paid amounts totalling "more than $6.5 million".




"As a result, customers who could not afford to make these payments felt that they had no option but to continue to use their vehicles," the statement reads.


It is also alleged that vehicles surrendered to Ford as part of that replacement were on-sold to wholesalers and customers, "without disclosing the systemic or specific issues experienced with those vehicles".





The ACCC is seeking declarations, injunctions, pecuniary penalties, consumer redress orders, corrective advertising, and compliance program obligations. What shape these penalties may take is still to be confirmed, although the Australian Consumer Law allows for a maximum penalty of $1.1 million for corporations.


Ford released a response today that it "strongly refutes" the allegations, listing the steps it has taken to address the matter with owners.










Author: AL
Source: Autolatest

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