On 7 April 2022, Justice Michael Lee of the Federal Court of Australia held that 264,170 Toyota vehicles were defective and that consumers who bought those vehicles are entitled to compensation in accordance with the Australian Consumer Law (ACL).

The Toyota class action arose because of a faulty diesel particulate filter (Relevant Defect) fitted to three widely sold Toyota models: the Hilux, Fortuner and Prado.

The decision applies to such vehicles sold between 1 October 2015 and 23 April 2020 (Relevant Period) supplied with IGD-FTV or 2GD-FTV diesel engines fitted with the Relevant Defect.

Those entitled to claim are "Consumers" within the meaning of the ACL who acquired a vehicle with the Relevant Defect in the Relevant Period.

Justice Lee based the representative claimant's recovery primarily on his vehicle's loss in value, which was fixed at 17.5%, equating to about $7,000. In addition to a loss of value, there could be further recovery for other loss, including downtime as to vehicles used for work.

Toyota faces overall claims which may approach $2 billion.

The judgment contains an analysis of great importance to the motor vehicle industry and to any other supplier conducting a recall or remediation process as to how the remediation provisions of the ACL operate.

The judgment also extensively considers provisions of the ACL, issues as to whom may be entitled to compensation and the scope and quantification of recoverable loss.

If you think you may be entitled to compensation you can register your interest on the Toyota Class Action website here.

The Toyota class action decision is of particular interest to our firm after we led the successful defence of the first class action in the Queensland Supreme Court at first instance, which involved the production and sale of certain products in the agricultural sector.

Whether you are a manufacturer, wholesaler or retailer of goods in any industry, if you wish to discuss any aspect of the Toyota class action so far as it may affect you, please do not hesitate to contact our Litigation + Dispute Resolution team.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.