Australian Competition and Consumer Commission v GM Holden Ltd (ACN 006 893 232)

COURT OR TRIBUNAL

Federal Court of Australia

DATE FILED (OR FIRST HEARING DATE)

16/01/2008

LITIGATION TYPE

Corporate Accountability

SUBJECT MATTER

Misleading and deceptive conduct

REVIEW TYPE

Merits review

SUMMARY

Between July 2007 and September 2007, GM Holden (respondent) published advertisements promoting its range of Saab vehicles. These advertisements claimed that the vehicles were carbon neutral across the whole range, and that 17 native trees were planted for every Saab vehicle purchased to offset carbon emissions for the life of the vehicle. The ACCC instituted proceedings in the Federal Court against GM alleging contravention of s 52 and s 53(c) of the Trade Practices Act 1974 (‘TPA’). The Federal Court held that the advertisements published breached both section 52 and 53(c) of the TPA as the carbon emissions from a vehicle in Saab range would not be neutral over the life of the vehicle, and the tree planting regime would not offset omissions for more than a single year of the vehicle’s operation. As a result of this finding, GM agreed to plant 12,500 native trees to offset the life-time emissions of all vehicles sold between the July 2007 to September 2007 period. In addition, GM made an undertaking to perform TPA compliance training for all Saab marketing staff.

CASE DOCUMENTS

Australian Competition and Consumer Commission v GM Holden Ltd (ACN 006 893 232) [2008] FCA 1428