The ACCC has instituted proceedings in the Federal Court against Ateco Automotive Pty Ltd, trading as LDV Automotive Australia, for allegedly making misleading representations to consumers about the durability and suitability of particular models.

The ACCC alleges that those vehicles had a propensity to rust or corrode within five years of being manufactured.

It is alleged that during various periods of time between approximately 23 April 2019 and 30 November 2024, LDV made misleading representations to consumers that models with T60 and G10 in their names (excluding the eT60) were ‘durable and tough’, and that they were suitable for use in, near, or on, a variety of environments and off-road terrains.

LDV made these alleged representations in advertisements published on various media, including its website, television, radio and social media, which often portrayed the vehicles on beaches; near lakes, rivers or other pooled water; on unsealed roads and in dirt or gravel terrain.

The ACCC alleges the relevant T60 and G10 vehicle models had a propensity to develop rust or corrosion within the first five years from the date of manufacture and therefore the advertised LDV vehicles, including those in which rust or corrosion occurred, were not ‘durable and tough’.

It is also alleged that the propensity to rust, which increased if the vehicles were used in, near or on certain terrain, made the advertised vehicles, including the vehicles in which rust occurred, not suitable for use in, near, or on, the advertised terrains.

“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.

The ACCC also alleges that in advertising a 10-year anti-corrosion warranty between 23 April 2019 and 31 August 2020, LDV made representations to consumers that the relevant T60 vehicle models did not have a material risk of developing rust or corrosion in the first 10 years of manufacture. The ACCC alleges that these representations were false or misleading, because of the propensity for those vehicles to develop rust or corrosion.

In addition or instead, the ACCC alleges that, by April 2019, LDV was aware that rust or corrosion issues were prevalent in the T60 models, within the first five years of being manufactured and that the representations alleged in the case were false or misleading, because LDV did not have a reasonable basis on which to make the representations.

Between approximately January 2018 and November 2024, LDV received more than 5000 consumer complaints regarding rust or corrosion in its T60 and G10 vehicle models: usually via LDV dealerships.

“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,” Ms Cass-Gottlieb said.

“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.”

The ACCC is seeking penalties, declarations, consumer redress, costs and other orders.

LDV Australia acknowledged the announcement by the Australian Competition and Consumer Commission in relation to the commencement of proceedings against LDV Australia in the Federal Court of Australia.

The General Manager of LDV Australia, Dinesh Chinnappa, said: 

“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. 

“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.”

Obviously, Outback Travel Australia cannot get involved in any discussion about this pending court case, but our general advice to all 4WD-brand ute and wagon owners is to avoid fresh water crossings whenever possible; never to drive in sea water and be aware that flying stones can dent and strip protective paint from 4WD undersides, thus exposing metal surfaces to rust formation and corrosion.

Historically, on this website we’ve been critical of all 4WD makers’ advertising – not just LDV’s – portraying their vehicles in situations we would never attempt with one of our own vehicles.