[2025] VCAT 560
General information, not legal advice.
Victorian Civil and Administrative Tribunal
2025-06-23
Original judgment source is linked above.
Ms E Riordan, Counsel and Mr D Woodridge, instructing solicitor
(a) A customer may experience the 'Service Required' message before the nominated service interval stated in the respondent's brochures or marketing material due to oil dilution.
(b) The 'Service Required' message (which should be displayed on the instrument cluster when a service interval is approaching) is not visible when the engine cranking commences from ignition off.
(c) Continued vehicle operation with high oil dilution (fuel in oil) will result in engine failure.
(d) The cause of the oil dilution was caused by a higher-than-expected number of partial Diesel Particulate Filter (DPF) cycles.
(e) The duration / distance required to complete a full regeneration of the 3.0l Range Rover Sport is such that there is an increased likelihood of an interrupted (or partial) regeneration when a customer ends their journey.
(f) The amount of post injection of diesel required to achieve a similar burn rate to achieve regeneration of the DPF is much higher on the 3.0l Range Rover Sport.
(g) This combines to significantly increase the fuel in oil contribution for each successive regeneration event, with fuel in oil (oil dilution) increasing at a much higher rate on affected Land Rover models.
(h) Oil dilution at 6.1% will trigger the 'Service Required' message which may be reached in advance of the service interval quoted for the vehicle.
(a) Engine failure poses a safety risk to occupants of the vehicle and other road users.
(b) The respondent knew, or ought to have known that there was a significant risk of engine failure arising from excessive oil dilution associated with its vehicle's DPF regeneration processes.
(c) The respondent knew, or ought to have known that the 'Service Required' warning message did not display in a vehicle's instrument cluster upon the engine being cranked from ignition off.
(d) The respondent chose to only inform its authorised repairers of the issues relating to excessive oil dilution set out in paragraph 14 above, being a known fault with its vehicles.
(e) The respondent knew, or ought to have known that vehicles it imported and distributed were also traded in a second-hand market, including a private second-hand market for its vehicles.
(f) The respondent did not inform or otherwise warn affected owners or potential buyers of a known fault with its vehicles or the associated risk of engine failure arising from excessive oil dilution associated with its vehicle's DPF regeneration processes.
(g) The respondent did not undertake a voluntary recall campaign in respect of its affected vehicles.
(h) The failure to inform or otherwise warn affected owners was not necessary for the protection of the respondent's legitimate commercial interests.
(i) The failure to undertake a voluntary recall of affected vehicles was not necessary for the protection of the respondent's legitimate commercial interests.
(j) There is a significant cost to affected customers associated with the purchase and installation of a new replacement OEM engine, which can only be purchased from the respondent through one of its authorised repairers or dealers.
(k) In the premises, affected owners and potential buyers are in a position of vulnerability as compared to the respondent.
(a) there was a campaign N020, to correct the instrument cluster software to enable the "Service Required" message to display when the engine was cranked from off;
(b) following completion of campaign N020, an oil and filter change could be completed as part of the campaign repair;
(c) the marketing brochures and internet sites have been updated from 1 June 2017 to set further customer expectation that service intervals depend on driving style and usage;
(d) the customer will be expected to bring their vehicle into a retailer once the 'Service Required' message is displayed on the instrument cluster or 'In Control Remote' application; and
(e) that on or about 27 August 2018, the campaign N020 was completed on the Vehicle by ULR Land Rover.

Did the respondent engage in misleading or deceptive conduct?
(1) A person must not, in trade or commerce, engage in conduct that is misleading or deceptive or is likely to mislead or deceive.
(a) where law or equity impose a duty of disclosure;
(b) where a statement conveying a half-truth only is made;
(c) where the representor has undertaken a duty to advise;
(d) where a representation, although correct at the time it was made, has a continuing effect and has subsequently become incorrect; and
(e) where the representor has made an implied representation.[7]
(a) A customer may experience the 'Service Required' message before the nominated service interval stated in the respondent's brochures or marketing material due to oil dilution.
(b) ...
(c) Continued vehicle operation with high oil dilution (fuel in oil) will result in engine failure.
(d) The cause of the oil dilution was caused by a higher-than-expected number of partial DPF cycles.
(e) The duration / distance required to complete a full regeneration of the 3.0l Range Rover Sport is such that there is an increased likelihood of an interrupted (or partial) regeneration when a customer ends their journey.
(f) The amount of post injection of diesel required to achieve a similar burn rate to achieve regeneration of the DPF is much higher on the 3.0l Range Rover Sport.
(g) This combines to significantly increase the fuel in oil contribution for each successive regeneration event, with fuel in oil (oil dilution) increasing at a much higher rate on affected Land Rover models.
(h) Oil dilution at 6.1% will trigger the 'Service Required' message which may be reached in advance of the service interval quoted for the vehicle.
Due to hardware and architectural differences between model lines, the amount of post injection [distance] required to achieve a similar burn rate is much higher on ... [the Vehicle] ... in comparison to... [other model lines] ... increasing the likelihood of an interrupted regeneration when a customer ends their journey.
Combined with the increased post injection [distance] requirement and increased impact of interrupted regeneration on oil dilution FIO [fuel in oil] increases at a much higher rate on ... [the Vehicle].
Oil dilution of 6.1% will trigger the Service Required message. Based on a customer's driving style and usage this value may be reached in advance of the service interval that was quoted in the online marketing and brochure for [the Vehicle]... [being]... 26k km/12 months.
The Handbook states that, depending on the type and style of driving that the Vehicle is subjected to, the indicator may display a service message at a shorter distance than shown in the service interval plans. This clause was never stated in any of the marketing literature so early service requirements may lead to customer dissatisfaction.
Marketing brochure and internet sites have been updated from 1st June 2017 to set future customer expectation that service intervals will depend on driving style and usage.
(1) A person must not, in trade or commerce, in connection with:
(a) the supply or possible supply of goods or services to a person; ...
...
engage in conduct that is, in all the circumstances, unconscionable.
[1] Ingot Capital Investments Pty Ltd v Macquarie Equity Capital Markets Limited [2008] NSWCA 206 [424]; Thomas v Panourakis [2014] VSC 398 [75], [95]; and s 97 of the Victorian Civil and Administrative Tribunal Act 1998.
[3] See ss.2(1) and 54(1)(a) of the ACL (Vic).
[4] See for example Williams v Pisano [2015] NSWCA 177.
[5] See for example Demagogue Pty Ltd v Ramensky [1992] FCA 557; (1992) 39 FCR 31 [40]- [41] (Gummow J), Butcher v Lachlan Realty Pty Ltd [2004] HCA 60; (2004) 218 CLR 592,623 [103] (McHugh J).
[6] Barport Pty Ltd v Baum [2019] VSCA 167, [195] (Kyrou, McLeish and Niall JJA).
[8] Paterson v Ford [2015] FCA 752, Capic v Ford [2016] FCA 924, ACCC v Audi AG [2019] FCA 1009, ACCC v Jayco [2016] FCA 1064 and Medtel Pty Ltd v Courtney [2003] FCAFC 151.
[10] ASIC v Kobelt [2019] HCA 18; 267 CLR 1, [92] (Gageler J).
[11] ACCC v Quantum Housing Group Pty Ltd [2021] FCAFC 40 [1-9].
Geaher
Jaguar Land Rover Australia Pty Ltd
(1992) 39 FCR 31
(2004) 218 CLR 592