Mercedes Benz slapped with $12.5m fine over Takata airbag safety

Leading car manufacturer Mercedes-Benz will pay millions in penalties after downplaying the risk posed by killer Takata airbags.

Mercedes-Benz has been ordered to pay a $12.5 million fine for downplaying the severity of the Takata airbag crisis in Australia.

The Federal Court ordered the carmaker to pay the fine for failing to use what the ACCC described as “attention-capturing, high-impact language when communicating with consumers about the compulsory recall of potentially deadly Takata airbags”.

At least 33 people, including an Australian man, died as a result of shrapnel propelled by faulty airbag inflators that ruptured when triggered during a crash.

ACCC deputy chair Delia Rickard said Mercedes staff failed to convey the threat posed by faulty airbag inflators when communicating with customers.

Mercedes-Benz has been fined over the Takata airbag safety scandal.

“We believe the statements made by Mercedes-Benz staff had the potential to give the impression to consumers that the airbag replacement was less urgent than was warranted by the real risks posed by the faulty airbags,” she said.

“Given the risks of misdeployment increased over time, we were concerned about the risks of any potential for delay in having these faulty airbags replaced.”

A spokeswoman for Mercedes-Benz said in a statement that the car maker co-operated with an investigation by the ACCC before reaching an agreement with the consumer watchdog.

A defective Takata airbag, Picture: Getty

“The actions of Mercedes-Benz Australia were not deliberate,” the spokeswoman said.

“In 27 telephone exchanges from more than 50,000 calls between consumers and our dedicated Takata Call Centre, it was established that five contractors failed to use attention-capturing, high-impact language required by the Recall Notice, in contravention of the ACL (Australian Consumer Law).

“All of the consumers involved with the contravening interactions had their vehicles recalled and the inflators in those vehicles were replaced.”

Sweeping Takata recalls affected more than 3 million cars in Australia.

Mercedes claims more than 99 per cent of Mercedes models affected by the issue have been rectified.

Some customers have not brought cars in to receive replacement parts.

Affected customers can contact Mercedes-Benz customer service on 1300 659 307.

Originally published as Mercedes Benz slapped with $12.5m fine over Takata airbag safety