High Court finds Mitsubishi did not break consumer law in fuel consumption case

Mitsubishi has been cleared after it appealed a decision that found it had breached consumer law.

The High Court of Australia unanimously found the Japanese carmaker had not engaged in misleading and deceptive conduct after a customer became dissatisfied with the real-world fuel consumption of their 2016 Mitsubishi Triton ute.

Mitsubishi Motors Australia and Northpark, the dealer trading as Berwick Mitsubishi that sold the vehicle, were taken to the Victorian Civil and Administrative Council (VCAT) by owner Zelko Begovic after a discrepancy in the real-world figures between his 2008 Triton and newer 2016 model – despite a lower number on the newer vehicle’s fuel consumption label.

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An example of the fuel consumption label which has been mandatory on all new cars since 2001.

The Motor Vehicle Standards Act 1989 requires a label to be affixed to the front windscreen of all new cars sold in Australia, displaying a vehicle’s fuel consumption – in ‘urban’, ‘extra-urban’ and ‘combined’ environments – and carbon dioxide emissions based on a standardised test.

In 2019, the brand was ordered to refund Mr Begovic for the $39,500 purchase price of the Triton after an independent tester and one of its own technicians were unable to match the claimed economy ratings.

Mitsubishi appealed this verdict in the Supreme Court of Victoria, but the court upheld the VCAT decision in 2021. The brand then appealed this decision to the High Court of Australia.

"Mitsubishi Motors welcomes the High Court of Australia's judgment," said the brand. "Mitsubishi Motors is committed to compliance with the law and the highest standards of ethical behaviour, and we will continue to do so."

The Federal Chamber of Automotive Industries said the High Court judgment provides “much-needed clarity and certainty” for the car industry.

“The judgement is a victory for common sense and backs in government-mandated fuel consumption labels,” noted FCAI chief executive Tony Weber.

The Australian Automotive Dealer Association (AADA) said it welcomes the High Court’s decision to uphold Mitsubishi’s appeal.

“This decision is excellent news for Australia’s more than 3000 franchised new car dealers and will bring certainty to the process of selling new cars in Australia,” said AADA CEO James Voortman.

“Federal regulations require all new vehicles to be affixed with a fuel consumption label listing the results from a government-specified laboratory test. The High Court has found that by complying with the letter of the law dealers and manufacturers are not in breach of Australian Consumer Law.

“This is a victory for common sense which will allow Australian dealers and manufacturers to continue to service the needs of their customers without fear of inadvertently breaching the law.”