AustraliaA car manufacturer knew about a fault but didn't issue a recall. Can I take legal action?
Yes, you may take legal action against a car manufacturer in Australia for failing to recall a known dangerous fault, under the Australian Consumer Law.
What the Law Says
The Australian Consumer Law (ACL) places strict obligations on manufacturers to act when they know a product poses a safety risk. Failure to issue a mandatory or voluntary recall where required can give rise to civil liability and penalties.
Under the ACL, a manufacturer must notify the ACCC and initiate a recall if it becomes aware that a product it supplies may cause injury or death — even if no injuries have yet occurred. This duty applies regardless of whether the fault was discovered internally or reported by customers or regulators.
The ACL also gives consumers a statutory right to compensation for loss or damage caused by a defective product. You do not need to prove negligence — only that the product was unsafe and caused your loss.
Penalties for breaching recall obligations are severe: corporations can be fined up to $10 million, three times the benefit gained, or 10% of annual turnover — whichever is greatest.
Statutory TextA person who supplies goods to which this section applies must, as soon as practicable after becoming aware that the goods may cause injury, notify the ACCC in writing...
— Competition and Consumer Act 2010 (Cth), Sch 2, s. 139 — Notification of safety hazards
Statutory TextA consumer who suffers loss or damage because of a failure to comply with a provision of this Chapter... may recover the amount of the loss or damage by action against the person who failed to comply.
— Competition and Consumer Act 2010 (Cth), Sch 2, s. 236 — Right to damages for breach of consumer guarantees and other provisions
Statutory TextA person who suffers loss or damage because a product does not comply with a safety standard... may recover the amount of the loss or damage by action against the manufacturer.
— Competition and Consumer Act 2010 (Cth), Sch 2, s. 271 — Manufacturer's liability for non-compliance with safety standards
What to Do
Gather evidence: keep records of the fault (photos, service reports, communications with the manufacturer or dealer), purchase documents, and any related expenses or injuries.
Report the issue to the ACCC via recalls.gov.au — this helps trigger official investigation and may support your claim.
Contact the manufacturer in writing to demand a remedy (repair, replacement, refund) or compensation — cite sections 139, 236 and 271 of the ACL.
If unresolved, lodge a claim in your state’s civil tribunal (e.g., NCAT, VCAT) for claims under $100,000, or in court for larger amounts.
Seek advice from a consumer law specialist or Legal Aid — strict time limits apply (generally 6 years from when loss occurred).
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.