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Toyota faces class action over paint defect in most popular model

A class action has been launched against Toyota on behalf of frustrated Corolla owners over alleged defects that cause paint to peel when exposed to sunlight, marking the second such lawsuit the carmaker has faced in recent months.

July 14, 2025 By Grace Robbie
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William Roberts Lawyers has launched a class action in the Federal Court of Australia on behalf of Toyota Corolla owners who allege that the iconic small car is afflicted by a defect causing its paint to peel.

This marks the second class action against the Japanese automotive giant within just two months, following Echo Law’s launch of a lawsuit in late May accusing Toyota of misleading customers into paying thousands of dollars for “junk insurance” products that provided little to no real value.

 
 

The current class action is on behalf of those who purchased or leased white Toyota Corollas, specifically those manufactured between July 2010 and September 2014 or finished in the factory colour code 040 – commonly known as Glacier White, Super White, or Super White II.

The claims allege that Australia’s best-selling car brand breached consumer guarantees under section 54 of the Australian Consumer Law by supplying vehicles with paint that may peel over time due to a defect in the paint adhesion process.

The lawsuit has resonated deeply with many affected drivers, as a dedicated Facebook group – now boasting over 7,000 members – has been flooded with posts from frustrated owners sharing images of large sections of paint flaking off their vehicles.

In July 2022, Toyota issued a statement acknowledging the issue, describing it as poor “adhesion between the factory-applied paint primer coat layer and the base metal electrodeposition layer”.

Despite this public admission, Toyota has not issued a blanket recall, prompting affected consumers to seek legal redress through the class action.

The class action is funded by litigation finance firm Omni Bridgeway on a “no-win, no-pay” basis, meaning class members face no upfront or out-of-pocket costs.

Under this arrangement, if the case is successful, the firm will recover its legal fees and a commission from any compensation awarded. However, if the case is unsuccessful, the funder will cover all legal costs, including any costs that may be awarded to Toyota.

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.

William Roberts Lawyers stated that eligibility to participate in the class action applies regardless of whether the vehicle was purchased new or second-hand, and even if the car has since been sold or has not yet exhibited signs of paint peeling.

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