The Fast and Furious Legal Mechanisms in the Auto Industry
Exploring Consumer Rights and Sales Law in the Volkswagen Emissions Scandal
In recent years, the environmental and human health consequences of vehicle exhaust fumes have been a constant topic in the news.
In the European Union, the rising sale of diesel cars over the past decade—a trend often encouraged by governments—has led to illegal levels of nitrous oxides and airborne microparticles, despite increasingly stringent emissions standards. A major factor has been engine management systems secretly designed by some manufacturers to cheat emissions tests, producing lower readings under official conditions than in real-world driving. Researchers at West Virginia University discovered such software in vehicles manufactured by the Volkswagen Audi Group (VAG). It is estimated that up to 11 million VAG vehicles may have been fitted with this “cheating” software. Fortunately, the issue can often be corrected via software updates, which VAG is in the process of rolling out.
However, millions of consumers remain affected. These vehicles have consumed more fuel and emitted more pollutants than expected, and in some cases, the fixes compromise performance to achieve previously advertised fuel economy.
Legal Remedies for Consumers
In North America—particularly Canada and the U.S.—multi-billion-dollar class actions have been initiated. In the UK, a similar action was filed before the High Court in January 2018. If successful, affected drivers may receive compensation for at least some of their losses, even if they no longer own the vehicle and despite the fact that most had no direct contractual relationship with VAG.
But what if drivers no longer want their vehicles due to these defects? Every driver has a contractual relationship of some form with their vehicle supplier—whether leased, bought on hire purchase, or purchased outright. While the type of contract affects the legal remedies, the Consumer Rights Act 2015 and the Sale of Goods Act 1979 provide a mechanism for rejecting defective goods—a potentially more powerful remedy than damages alone.
Satisfactory Quality under the Sale of Goods Act
The first avenue to consider is satisfactory quality under s.14 of the Sale of Goods Act. Goods sold “in the course of business” must meet standards that an ordinary person would regard as satisfactory, considering descriptions, price, and other circumstances. Section 14(3) further addresses goods sold for a specific purpose.
Tampering with engine software and the resulting failure to meet emissions standards—and the associated higher fuel bills—could arguably render the vehicle unsatisfactory. While some might argue these are minor defects, case law suggests otherwise. In Millars of Falkirk v Turpie, a trivial defect costing £25 to rectify was not considered a breach. However, the scale and consequences of VAG’s emissions issue are far greater, involving financial, environmental, and public health impacts.
Environmental standards and fuel efficiency may not have been historically treated as central to satisfactory quality. In Jewson v Boyhan, poorly performing boilers were initially deemed unsatisfactory, but on appeal, it was ruled that a reasonable buyer would not consider low energy efficiency alone to make the goods unsatisfactory. However, when considering vehicles, the combined impact of millions of cars emitting excessive pollutants and consuming more fuel may tip the balance in favor of consumers.
Comparing to Other Industries
Analogies can be drawn to the Britvic v Messer case, in which food-grade carbon dioxide contaminated with benzene—even at low levels—was held to breach s.14(2), entitling consumers to damages. If a trivial presence of a toxic substance in food is grounds for legal recourse, the logic extends to vehicles emitting harmful pollutants beyond legal limits.
Similarly, the recent Apple case—where software updates reduced battery life and performance without disclosure—demonstrates how consumers may claim under the Consumer Rights Act 2015 for unsatisfactory quality. While Apple offered replacements, the principle of consumer expectation remains central.
Public Interest and Environmental Impact
This issue is distinct from phones or sodas because the consequences are collective rather than individual. Vehicles emitting excess pollutants contribute directly to public health risks and environmental damage. Consumers have a reasonable expectation to receive accurate information about emissions and fuel efficiency, particularly when government policies aim to regulate air quality and promote sustainable transportation.
A counterargument is that petrol and diesel are inherently toxic, so consumers should anticipate environmental harm. However, the legal standard focuses not on absolute risk but on the misrepresentation of expected performance. Vehicles advertised to meet specific emissions standards while secretly circumventing them mislead buyers, undermining trust and public policy objectives.
Conclusion
While damages compensation provides partial relief, the broader legal question is whether misrepresented emissions and fuel performance breach the statutory requirement for satisfactory quality. Given the significant environmental, financial, and health consequences, there is a strong argument that affected consumers should have the right to reject or seek remedy for their vehicles.
The intersection of consumer law, environmental protection, and corporate accountability highlights the complex legal landscape in which the auto industry now operates. For regulators and lawyers alike, the VAG emissions scandal illustrates the need to adapt legal mechanisms to modern, real-world challenges.
