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HomeEconomyAustralia fines Mercedes-Benz unit $8.5m for lack of urgency in airbag recall

Australia fines Mercedes-Benz unit $8.5m for lack of urgency in airbag recall

(Reuters) – The Federal Court of Australia has ordered the local unit of Mercedes-Benz Group to pay 12 A$500,000 (8.49 ) million) fine for failing to communicate to customers the urgency of recalling its “potentially lethal” airbags, the country’s competition watchdog said on Friday.

In a statement, the Australian Competition and Consumer Commission (ACCC) said the German carmaker’s statement acknowledged it had failed to comply with the country’s motorway safety agency’s Takata recall notice. The requirement to clearly communicate the urgency of the recall to customers violates the country’s consumer law.

“We believe that statements made by Mercedes-Benz employees have the potential to give consumers the impression that the urgency to replace airbags is not warranted by the actual risk posed by airbag failure urgency,” ACCC deputy chair Delia Rickard said.

In conversations with 27 consumers, Mercedes-Benz employees describe recall as “precautionary measure n”, or imply Mercedes-Benz The type of airbags used in Sri Lanka cars have not caused any accidents, injuries or incidents, but this is inaccurate, ACCC says.

Regulator says airbags – manufactured by Japanese auto parts maker Takata identified as a “potentially fatal problem” by Takata Corp.

“The manufacturer takes risks seriously and clearly communicates them to consumers. “

Mercedes did not immediately respond to a Reuters request for comment.

($1 = 1.4717 AUD)

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