Quebec class action lawsuit involving key fobs could amount to $1 billion

The class-action lawsuit authorized by the Superior Court of Quebec against 13 major automakers alleges that these companies have been selling vehicles with safety vulnerabilities that make them susceptible to theft. If the lawsuit, initiated by Cabinet Bouchard Avocats, is successful, the automakers could be liable for over a billion dollars. This potential outcome could mark one of the most substantial class-action lawsuits in Canada’s automotive industry.

At the heart of the issue are smart keys or key fobs, which enable drivers to unlock and start their vehicles with the simple push of a button. While convenient for car owners, these keyless entry systems have also become favorable targets for car thieves. The problem lies in how these keys communicate with a vehicle’s onboard computer, making them vulnerable to interception and duplication. This flaw allows criminals to execute relay attacks, gaining remote access to the vehicle, starting the engine, and driving away within minutes. Subsequently, thieves can reprogram a new key using the vehicle’s OBD system and ultimately sell the stolen cars, often on the international market.

The lawsuit stemmed from an incident involving André Lacroix, who fell victim to a relay-attack theft in April 2022. The retired engineer’s Toyota Highlander disappeared overnight from his daughter’s driveway in Boucherville, sparking his involvement in the class-action suit. Despite Lacroix’s meticulous precautions of locking his doors and keeping the keys inside the house, his SUV vanished without a trace. This occurrence exemplifies the prevalence of relay-attack thefts in Quebec and Ontario, considered hotspots of a national car-theft crisis.

In May 2024, Bouchard Avocats initiated the class-action lawsuit, accusing car manufacturers of negligence in their design practices. The legal argument posits that the automakers were aware of the vulnerability of their key systems to relay theft but failed to implement adequate security measures. Moreover, the manufacturers allegedly neglected to inform buyers of this security flaw and ways to mitigate the associated risks. As per the plaintiff’s attorneys, the owner’s manuals lacked any mention of the vulnerability that enables the interception and cloning of signals from electronic keys, allowing unauthorized access to the vehicle.

The case underscores the importance of consumer protection, emphasizing the need for transparency regarding potential security risks inherent in vehicle technology. By shedding light on these vulnerabilities, this lawsuit aims to hold automakers accountable for mitigating security risks and safeguarding consumers from potential car thefts facilitated by smart key systems.