Australian Law Firm Sues Toyota for Hiding Emissions and Evading Vehicle Standards

Signage is displayed outside the Toyota Motor Corporation's Altona manufacturing plant in Melbourne, Australia, on Feb. 10, 2014. Paul Crock/AFP via Getty Images

A law firm in Melbourne has brought court action against Australia’s most popular car brand Toyota for allegedly using “defeat devices” in its diesel vehicles to hide emissions and evade car standards.

The lead lawyer of Maddens Lawyers, which lodged a class-action lawsuit in Victoria’s Supreme Court on Oct. 18, warned that Toyota could be compelled to pay between $500 million (US$316 million) and $1 billion to up to half a million Australian car owners.

The lawsuit targets a wide range of popular vehicles, from four-wheel drives to utes and vans, such as Hi-Lux, LandCruiser, RAV4, Prado, Fortuner, Granvia and HiAce.

It also includes Toyota vehicles purchased since February 2016, both new and second-hand.

What is the Lawsuit about?

According to Maddens Lawyers special counsel Brendan Pendergast, the lawsuit will claim that some Toyota vehicles comply with emissions standards during test conditions using sophisticated engineering“ and ”multiple sensors", but they fail to do so in real-world use.

“We allege that not through accident, but through deliberate engineering intervention, these vehicles are fitted with what are generically called defeat devices,” he said.

“When the vehicle comes under load or achieves speeds commonly required in the usual purchaser of a vehicle, the vehicle no longer complies with the emission standards.”

“Defeat device” is a general term for any type of hardware, software, or design that makes vehicles perform as if they meet emissions standards under test conditions.

However, these devices can interfere with or turns off emissions controls during normal operation, causing vehicles to release more pollutants than permitted.

Toyota vehicles are displayed at a Toyota dealership in Sydney, Australia, on Dec. 12, 2013. William West/AFP via Getty Images

Pendergast claimed that the true emissions of Toyota vehicles would only be revealed when they were driven at higher speeds and that many buyers might have been convinced to purchase Toyota vehicles under false pretences.

“Many Toyota owners would be shocked, disappointed,” he said.

“'This class action is one of the biggest claims in Australia’s legal history. It could result in each participant receiving tens of thousands of dollars of compensation.”

The law firm is encouraging Toyota vehicle owners to join its class action by registering online on its website.

Toyota’s Response

Meanwhile, Toyota Australia has refuted the claims made by Maddens Lawyers.

“Toyota Australia stands by its reporting, monitoring and evaluation standards in relation to the emissions for all its vehicles,” it said in a statement.

“We will defend the class action announced today rigorously.”

Toyota is currently the largest car maker in Australia. According to the Federal Chamber of Automotive Industries, the company sold 14,852 vehicles in September, followed by Kia (7,290), Mazda (7,259) and Mitsubishi (6,784).

The Maddens Lawyers’ class-action lawsuit comes as another two Australian law firms are suing Hino, a subsidiary of Toyota, over emissions from its trucks.

These lawsuits are the latest in a series of court cases against vehicle makers over defeat devices in Australia in recent years.

In December 2019, Australia’s Federal Court ruled that Volkswagen made false representations about compliance with Australian diesel emissions standards.

The German car manufacturer was then ordered to pay $125 million, the second largest penalty issued for a breach of Australian Consumer Law.