Toyota is facing a class action in the Federal Court, as thousands of Australian Corolla owners allege the iconic small car is plagued by a defect that causes paint to peel when exposed to sunlight.

As reported by AAP, the lawsuit was filed on Wednesday and seeks compensation on behalf of customers who purchased or leased white Toyota Corollas – specifically those manufactured between July 12, 2010, and September 30, 2014 – and finished in factory colour code 040.

Lawyers from William Roberts, the firm representing the plaintiffs, argue the issue stems from a defect in the paintwork that breaches Australian Consumer Law. The suit alleges Toyota failed to disclose critical information about a flaw that makes affected vehicles more susceptible to paint delamination over time.

“Throughout the periods during which the affected vehicles were manufactured, Toyota did not disclose to the public that affected vehicles contained the paint peeling defect or … had the propensity to experience the … defect,” the firm stated.

2012 Toyota Corolla Ascent

The claim rests on the consumer protection provisions of Australian Consumer Law, which require all vehicles sold from 2011 onwards to be of “acceptable quality.” If proven, Toyota could be held liable for losses incurred by thousands of owners impacted by the issue.

Toyota Australia has previously acknowledged the issue in a 2022 statement, explaining the defect could be linked to long-term UV exposure degrading the adhesion between the primer and base layers of paint. “Over time, [this exposure] degrades the adhesion between the factory-applied paint primer coat layer and the base metal electrodeposition layer, causing paint to peel from the metal body panel,” the company said.

While the company has not yet commented on the class action, a spokesperson confirmed that Toyota is aware of the filing and will respond in due course.

2012 Toyota Corolla Levin SX

The lawsuit has struck a chord with many affected drivers. A Facebook group dedicated to the issue, which now boasts more than 7,000 members, has been flooded with posts from frustrated owners sharing images of large paint sections flaking off their cars. Many have expressed their intention to join the legal proceedings.

Under current consumer law guidelines, motorists are entitled to a free repair when a vehicle has a minor defect. Whether the court will agree that the paint issue qualifies remains to be seen.