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Advertisements of the LDV T60 and G10 were allegedly misleading to consumers, claims the ACCC, due to the model's supposed high propensity for rust and corrosion.
The Australian Competition and Consumer Commission (ACCC) will pursue legal action against LDV Automotive Australia for allegedly misleading consumers on the "durability" of the T60 ute and G10 van.
According to the ACCC release, both models were depicted in advertisements that implied the LDV models "were durable and tough" and that they are "suitable for use in, near, or on, a variety of environments and off-road terrains".
However, the ACCC posits the models "had a propensity to develop rust or corrosion within the first five years from the date of manufacture", making the T60 and G10 "not durable and tough" – unlike what is implied in marketing materials.
For LDV Australia’s part, the brand’s local General Manager Dinesh Chinnappa said it had already been working to remedy the known issues, even before court proceedings were initiated.
"For 18 months, LDV Australia has been engaged in good faith discussions with the Commission in an attempt to resolve its concerns, and to provide remedies to consumers," Chinnappa said.
"It is disappointing this process has ended in these legal proceedings.
"LDV Australia takes its obligations under Australian Consumer Law seriously, and we look forward to defending the ACCC’s allegations in court."
Of note, all LDV Australia models come with a 10-year anti-corrosion warranty, wherein the brand would be required to resolve any rust situation.
2020 LDV G10 diesel auto
However, the ACCC said the anti-rust assurance period "made representations to consumers that the relevant T60 vehicle models did not have a material risk of developing rust or corrosion", and that "these representations were false or misleading due to the propensity for those vehicles to develop rust or corrosion".
The ACCC also claims LDV was alerted to these issues by April 2019, and that advertising the T60 and G10 in settings which may encourage rust were deceptive as the brand "did not have a reasonable basis to make the representations".
It is claimed that between January 2018 and November 2024 that LDV received "more than 5000 consumer complaints regarding rust or corrosion in its T60 and G10 vehicle models, usually via LDV dealerships".
The ACCC specifically cites the period between approximately April 23, 2019 and November 30, 2024 when promotional material including the phrases "the T60 Ute has the tough build and all the robust features needed to take you anywhere, be it work or play" and "G10s are built to stand up to the everyday and so much more" were released by LDV.
Advertising pictures also depict the T60 driving on the beach and through a stream, and the G10 on a construction site and at a coastal car park.
"A new car is a significant financial purchase, and consumers rightfully expect that the vehicle they purchase will live up to the quality and uses that it was advertised to include," ACCC Chair Gina Cass-Gottlieb said.
"We allege that despite being aware of the propensity for the vehicles to rust, LDV continued to make representations for a number of years that the T60 and G10 vehicles were durable and suitable for use in a variety of terrains.
"As a result, we allege that LDV’s conduct is likely to have caused harm to affected consumers, including because the propensity for rust or corrosion lowered the value of their vehicles, and because consumers lost the opportunity to make an informed decision that may have involved purchasing an alternative vehicle that did not carry the same risks."
Approximately 60,000 units of the T60 and G10 vehicles were sold between 2018 and 2024, worth around $1.5 billion in revenue according to the ACCC.
If the Federal Court case goes the ACCC’s way, it will seek penalties, declarations and consumer compensation from Ateco, the sole Australian importer of LDV Automotive Australia.
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Tung Nguyen has been in the automotive journalism industry for over a decade, cutting his teeth at various publications before finding himself at Drive in 2024. With experience in news, feature, review, and advice writing, as well as video presentation skills, Tung is a do-it-all content creator. Tung’s love of cars first started as a child watching Transformers on Saturday mornings, as well as countless hours on PlayStation’s Gran Turismo, meaning his dream car is a Nissan GT-R, with a Liberty Walk widebody kit, of course.
