Audi red faces award

Audi Australia Pty Ltd suffered some embarrassment recently when a series of ads run in the Melbourne Age and Sydney Morning Herald was found to contravene the Trade Practices Act through making "false and misleading representations" concerning the Q7 model's standard seating configuration and on-the-road pricing.

According to a declaration by the Federal Court following proceedings instituted by the Australian Competition and Consumer Commission (ACCC), the press advertisements quoted prices that did not include statutory and dealer delivery charges, while also failing to mention that seven seats are not standard equipment in any Q7 models.

While the advertisements mentioned a price of $79,000 for the 3.6-litre V6 Q7, the actual on-road price quoted by one Melbourne dealer for a 3.6-litre V6 Q7 equipped with seven seats was, according to the ACCC, more than $9000 over that. The price for adding the extra seating, as quoted by Audi on the automotive industry website Autonews, is $1700.

The offending ads were run in The Age and SMH between June 23 and August 18 in 2007.

Audi was ordered to pay the ACCC's costs of $25,000 and to publish an advertisement in The Age and The Sydney Morning Herald newspapers referring to the civil proceedings and the orders made by the court (the costs of which are undisclosed).

In an industry where similar transgressions are not unheard of, the Federal Court findings signal a warning that future offenders may not get off as lightly.

According to ACCC Chairman Mr. Graeme Samuel, "The proceeding against Audi Australia reflects the seriousness with which such conduct is viewed and the ACCC's shift from an educative approach to a litigious stance.

 "It is perhaps now timely that a further warning be given to participants in the motor vehicle industry. The warning is this -- next time such conduct may be considered with a view to instituting a criminal prosecution."

Mr Samuel noted Audi Australia's co-operation in settling the matter by submission of consent orders and an undertaking.

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