Toyota avoids fines over DPF issues

Toyota Australia has welcomed an Australian Competition and Consumer Commission (ACCC) ruling that it will not have to “pay a monetary penalty” for engine problems linked with diesel particulate filters found in hundreds of thousands of its vehicles.

It’s not yet clear what impact, if any, the ACCC’s acceptance of a court-enforceable undertaking from Toyota Australia will have on the current class action running in the Federal Court.

However, the consumer watchdog stated that Toyota has now acknowledged “concerns that consumers can be misled about how their consumer guarantee rights under the Australian Consumer Law interact with manufacturer’s warranties”.

“We received a number of complaints about Toyota’s approach to consumers experiencing issues with the diesel particulate filter (DPF) in their vehicles,” said ACCC commissioner Sarah Court.

“Toyota has now undertaken to review its systems and procedures for customer complaint handling, to ensure consumers are able to access a refund or replacement vehicle where there has been a major failure.”

Toyota Australia has built its reputation and market dominance on the perception of reliability and trust, two elements that are currently being tested in court via a class action involving disgruntled Toyota HiLux, Prado and Fortuner owners.

In the class action, which is led by Bannister Law and Gilbert + Tobin on behalf of the vehicle owners, Toyota is accused of misleading, deceptive and unconscionable conduct.

A technical report adopted into evidence at an interlocutory hearing in the Federal Court in October also heavily criticised the DPF at the heart of the class action, claiming it was not designed to function “in all reasonably expected conditions” in Australia.

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In delivering the ACCC’s response to the issue, Ms Court said: “The ACCC continues to prioritise work in the new car retailing sector and we are pleased Toyota customers will now benefit from a better approach in terms of being informed about, and exercising, their consumer guarantee rights.

“All businesses, including car manufacturers, are reminded that consumer law rights cannot be excluded, restricted or modified. Express warranties operate in addition to consumer guarantees, not instead of these statutory guarantees,” she added.

Toyota Australia issued the following statement today in response to the ACCC’s findings:

“After an investigation, the ACCC has accepted an undertaking from Toyota Australia in relation to the statutory consumer guarantees in the Australian Consumer Law.

“The investigation focused on communication with consumers about their rights under the consumer guarantees, including in relation to Diesel Particulate Filters in certain HiLux, Prado and Fortuner models.

“Toyota Australia welcomed the opportunity to resolve this matter without formal legal proceedings and without Toyota Australia being required to pay a monetary penalty.

“The undertaking, consistent with Toyota Australia’s approach to continuous improvement, includes commitments to expand and improve processes for communicating with vehicle owners and training staff and dealers.

“Toyota Australia constantly reviews and improves its processes and has continued to do so throughout the ACCC investigation. Toyota Australia’s Guest Charter, published in 2019, confirms its commitment to addressing consumer concerns in accordance with the Australian Consumer Law.

“In 2019, Toyota Australia also released the Toyota Warranty Advantage, a comprehensive standard five-year new-vehicle warranty, to provide increased peace of mind to owners.”

A spokesperson for the car company added: “Toyota Australia’s commitment to our customers includes addressing any concerns quickly, effectively and in accordance with the Australian Consumer Law.

“We see our commitments in this undertaking as being consistent with the work already in progress and with our core value of continuous improvement.”

Stay tuned for updates.