ACCC takes Audi to court over emissions

Australia's consumer watchdog has revved up Federal Court action against Volkswagen over allegations subsidiary Audi Australia misled drivers about emission rates of their cars.

The ACCC alleges Volkswagen installed software in engines that deceptively reduced diesel emission levels of vehicles during testing over a four-year period from 2011.

ACCC chairman Rod Sims said Audi Australia breached Australian consumer law in supplying some 12,000 affected vehicles to Australian consumers.

It had advertised cars as being environmentally friendly, meeting high European standards and producing low emissions when that was "not the case under normal driving conditions", the ACCC alleges.

"Consumers expect that there is some relationship between the performance of the car as set out in the sales brochure and their day to day on-road use," Mr Sims said.

The ACCC legal action against Audi, its subsidiary Audi Australia and German owner Volkswagen comes on top of proceedings already instituted last September against Volkswagen.

The ACCC is seeking declarations of guilt, financial penalties and corrective advertising.

Skoda-branded cars, some of which also had the software installed, won't face ACCC action because not enough were sold in Australia.