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Here's TRAC vs. Auto LSD explained by Toyota, from the features guide.

Outline of Auto LSD
 The Auto LSD achieves the equivalent functions of an LSD (Limited Slip Differential) through the use of a traction control function. For this reason, the contents of brake control are the same between Auto LSD and TRAC. When the driver presses the Auto LSD switch, this function achieves the LSD effect by regulating the hydraulic pressure that acts on the drive wheels and controlling the engine output in accordance with the amount of pedal effort applied on the accelerator.
 TRAC enhances the start off performance of the vehicle during low-resistance surface conditions, such as snow or mud, by restricting the acceleration effort during a start off in order to prevent the wheels from spinning.
 On the other hand, the Auto LSD tends to enhance the acceleration effort somewhat in order to apply greater drive torque to the wheel that is making contact with the ground. Thus, this function helps the vehicle get unstuck if a wheel loses its grip, and enhances the vehicle’s start off performance on high-resistance surface conditions such as gravel roads.


It also cautions you not to use the Auto LSD function for anything but starting off on a "surface with high resistance such as sand or mud" and not for normal driving.

VSC uses the "cooperative control" system to link together TRAC, ABS, EPS and AWD, if equipped, to control a slide.
 
It's hard to see how much of a lawsuit could be made out of it. They never claim that the vehicle is equipped with an LSD, only an "Auto LSD", which is Toyota's name for the sort of electronic simulated LSD that's common to many manufacturers. Toyota clearly explains in the owner's manual that this system uses the traction control system to regulate power and braking. The words "limited slip" don't even appear. I doubt much of a case remains to be made that Toyota deliberately intended to mislead people into thinking that an actual mechanical LSD was part of the package.
 
As long as it's described as an "Auto LSD" or "LSD - auto" it's not a false statement. Having the word "auto" in there specifies it, just not very clearly. Anyone who really cared about what Toyota meant by that term could find out fairly easily before purchase.

And surely no one who knows how a real LSD works would be confused about what was really in there once they got into the actual vehicle and saw the button on the dash, since presumably they'd be aware that a real LSD wouldn't require a button.

I don't think even a truly litigious individual could make much of a case out of this.
 
It's still grasping at semantics and a strict definition of a term. Again, nowhere does Toyota state that the vehicle has a limited slip differential. Instead, they say it has an "auto" LSD. Qualifying it like that makes a difference. A court would have to be convinced that the term "limited slip differential" was either sacred or enshrined in law to the point where a reasonable person would be misled by Toyota's name for the feature.

It would also look at precedent - how do other manufacturers refer to such a system? VW/Audi call it EDL (electronic differential lock). On a Chrysler, it's BLD (brake lock differential). Neither of these actually lock the differential. Marketing terms that do a slightly better job than "Auto LSD" of explaining what's going on? Or just two more court cases?

If anyone bought this vehicle with the belief that it has an actual LSD, they're guilty of not doing sufficient research. Hardly a misleading con job on the part of Toyota.
 
SteVTEC said:
A true limited slip differential does work "automatically", and hence it's not changing the definition sufficiently.
Without putting too fine a point on it, whether or not you think it's sufficient to change the meaning isn't the litmus test for deception. :D Again, a better argument would have to be put forward based on whether or not a reasonable person would be misled by Toyota's use of "limited slip differential" in this context. I certainly wouldn't be, no more than I was misled by VW's use of "electronic differential lock" on my last VW. I hope you wouldn't be either. Toyota's use of the "auto" word certainly would make me investigate further if I cared about that feature.

SteVTEC said:
Maybe there's some subtle differences, but the concept of operation between the Camry and RAV4 are the same. Open differential plus traction control / ABS to control wheelspin. On the Camry it's just VSC/TRAC, but on the RAV now you have a "Limited Slip Differential".
Seems pretty clear from the information available that although the RAV4 and Camry both have VSC & TRAC, on the RAV4 the "Auto LSD" is a further function of TRAC that's intended to be used differently, as noted above, and is activated manually by the driver. I would draw a parallel example between the Matrix AWD and the RAV4. Although both use the same AWD system, the Matrix isn't equipped with the "Lock" button on the dash, which allows the RAV4's AWD system to be put into a mode unavailable on the Matrix. Auto LSD is also offered on the Tundra, Tacoma, 4Runner and FJ Cruiser. I'm not aware of any Toyota car that has it.

SteVTEC said:
If it says on the damned spec sheets that something has a "Limited Slip Differential" (auto or not), then I fully expect that the car will have a real hardware based internally limited slip differential, as that's generically what the term has come to mean. You can't be guilty of not doing enough research when Toyota is lying right out their ass on this, and assuming that their customers will be stupid enough to not know the difference. Any case brought wouldn't necessarily have to come to trial. Things like these are commonly settled out of court just to keep things quiet and avoid all of the bad publicity and embarassment.
It all hinges on whether your expectation is a reasonable one, based on Toyota's description and information available. Toyota is clearly using "Auto LSD" as their name for what's generically widely known as an electronic LSD. "Fake traction control-based simulated LSD" doesn't quite have the same ring to it to the ears of a marketing department.

So we all agree it's not a real LSD. Whether Toyota's name for it is merely potentially confusing or a blatant, shameless bald-faced lie is entirely a matter of opinion. But hey, that's where the courts come in, isn't it? 8)
 
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