Last month, the Australian Competition and Consumer Commission (ACCC) launched Federal Court proceedings against LDV Automotive Australia (LDV), alleging misleading advertising related to the durability and suitability of LDV’s T60 and G10 vehicle models. This case takes aim at fundamental expectations Australians hold when purchasing new vehicles—trust in the promises made by manufacturers regarding reliability and suitability for the rugged, outdoor environments often depicted in automotive advertising.

The ACCC’s case claims that from at least April 2019 to November 2024, LDV promoted its T60 and G10 vehicle models (excluding the eT60) as tough, durable, and suitable for use on beaches, near lakes or rivers, and across challenging, unsealed roads. These representations were bolstered through a heavy marketing push across television, radio, social media, and on its website, frequently showing vehicles handling rugged terrains and coastal settings.

However, according to the ACCC, many of these vehicles developed rust or corrosion within the first five years of manufacture. This issue, the ACCC asserts, was well known to LDV, particularly as the company had received over 5,000 consumer complaints regarding rust or corrosion in T60 and G10 models between January 2018 and November 2024, mostly submitted via their dealership network.

Most damningly, the ACCC alleges that the environments in which these vehicles were advertised—beaches, lakesides, and dirt roads—were precisely those that heightened the risk of rust and corrosion. Thus, not only were the vehicles portrayed as suitable for these settings, but buyers were actively encouraged to expose their vehicles to damaging conditions with the false assurance of durability .

The issue was compounded by LDV’s marketing of a 10-year anti-corrosion warranty between April 2019 and August 2020, suggesting to consumers that the T60 models did not have a material risk of corrosion during this period. According to the ACCC, such claims were false or misleading, especially with LDV’s knowledge of widespread rust issues occurring much earlier.

As ACCC Chair Gina Cass-Gottlieb highlighted, purchasing a new car is a major financial decision. Consumers relied on LDV’s representations, expecting their vehicles to be robust and fit for diverse Australian conditions. The ACCC contends that many buyers may have chosen different brands or models had they been fully informed of the corrosion risk. Instead, affected LDV owners faced diminished vehicle values and lost opportunities for informed decision-making.

The issue is substantial: from 2018 to 2024, LDV dealerships sold more than 60,000 affected vehicles in Australia, generating over $1.5 billion in revenue (excluding GST) . With 102 dealerships across the country and a portfolio that includes both commercial and passenger vehicles, the impact on Australia’s automotive landscape is significant.

The ACCC is seeking penalties, declarations, redress for affected consumers, cost recovery, and other orders against LDV. Should the court rule in the ACCC’s favour, the case will serve as a powerful warning to the automotive industry about the consequences of making durability claims that aren’t backed by the realities of product performance.

Beyond LDV, this high-profile action underscores the ACCC’s ongoing commitment to consumer protections in Australia, reinforcing the principle that marketing promises must be anchored in fact. It reminds both manufacturers and consumers to scrutinize claims about vehicle toughness and durability—particularly in a country where challenging environments are part of everyday life.

The outcome of this case could reshape industry practices around vehicle advertising and warranties, ensuring that future marketing is more closely aligned with real-world use and product resilience. Australian car buyers, for their part, may emerge better protected, with clearer information upon which to base one of their most significant purchasing decisions.

NZ response

LDV New Zealand is aware of the legal proceedings initiated by the ACCC against Ateco Automotive in Australia, concerning representations made about certain LDV models. As this matter relates to the Australian market, we’re not in a position to comment. LDV New Zealand remains committed to supporting our customers, and anyone with concerns about their vehicle is encouraged to contact their local LDV retailer – Kym Mellow, General Manager of Inchcape New Zealand Limited.