The President of the Office of Competition and Consumer Protection (UOKiK) imposed the highest penalty in the history of UOKiK for violation of consumer rights. Volkswagen Group Poland has to pay over PLN 120 million for the so-called dieselgate scandal.
The Volkswagen concern used EA 189 EU 5 engine controlling software in Volkswagen, Audi, Seat and Skoda cars manufactured after 2008. Under test conditions, it underestimated nitrogen oxide emission levels. The software recognized that the car was at a test station and reduced nitrogen oxide emissions, whereas the emissions were higher during normal use. These values differed significantly from those declared to consumers in advertising materials and approval documents. This means that they were misled. What’s more, the company issued guidelines for dealers indicating that they were to disregard legitimate consumer complaints relating to nitrogen oxide emissions.
In the proceedings against Volkswagen Group Poland the Office of Competition and Consumer Protection collected 25 volumes of files and over 5 thousand sheets of evidence. The proceedings conducted by the Office was also joined by the Regional Prosecutor’s Office in Warsaw.
The Office contested disseminating false information in advertising materials which suggested that Volkswagen, Seat, Skoda and Audi cars were environmentally-friendly and met the requirements for nitrogen oxide emissions. The concern issued guidelines for sellers of these cars which suggested that consumers’ complaints should not be taken into account, even though there was a clear defect. The penalty for Volkswagen Group Poland was over PLN 120 million (PLN 120 607 288).
“I took into account the fact that the practice lasted 8 years and there were no settlement proposals from the company during the proceedings. The company acted to the detriment of consumers because it made unethical recommendations that dealers should not accept legitimate consumer complaints. Incorrect information in advertising materials caused disinformation – such information referred to Volkswagen’s environmentally-friendly attitude, whereas in fact the cars were not environmentally-friendly. Manipulating exhaust emissions is denial of an environmentally-friendly attitude”, adds Marek Niechciał.
This is the highest sanction in the history of UOKiK for violation of the collective interests of consumers. The practice has been abandoned: the company does not disseminate misleading information or guidance disputed by the Office in the proceedings. Nevertheless, the effects of the recent practices may still persist – many people may have given up on pursuing claims. In addition to the financial penalty, the President of UOKiK ordered that all consumers who bought cars from the VW Group with the EA 189 EU 5 engine should be informed of the decision. The company should also publish the decision on its website.
UOKiK is yet another authority in Europe to complete proceedings in the case. Before the Polish authority, proceedings were concluded by the Italian authority, which imposed a total of EUR 5 million in penalties on Volkswagen AG and Volkswagen Group Italia.
