Volkswagens $125m dieselgate penalty upheld on appeal

Volkswagen Aktiengesellschaft v Australian Competition and Consumer Commission [2021] FCA 2166

What you need to know

• The Full Federal Court has dismissed Volkswagen's (VW) appeal of a $125m civil penalty imposed by Justice Foster, which was $50m higher than the penalty agreed by VW and the ACCC in a negotiated settlement.
• The record $125m penalty dwarfs previous penalties for breaches of the Australian Consumer Law (ACL), but was "not excessive, let alone manifestly excessive".
• Corporations that breach the ACL face potentially massive penalties particularly now that maximum penalties per breach (the greater of $10m, three times the benefit obtained or, if that cannot be determined, 10% of annual turnover in Australia) are significantly higher than those applicable to VW's conduct ($1.1m per breach).