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HomeCanadaBreaking:: Canadian Auto Parts Manufacturers to Pay $78 Million in Price-Fixing Settlements

Breaking:: Canadian Auto Parts Manufacturers to Pay $78 Million in Price-Fixing Settlements


Courts in three provinces have approved settlements of 23 Canadian class action lawsuits worth $78 million in a series of cases alleging that auto-parts manufacturers defrauded automakers, businesses and new-car buyers in a price-fixing deal that spanned nearly two decades. goes back.

The settlements, which were approved by courts in Ontario, BC and Quebec on Wednesday, are the latest in a series of class actions in Canada alleging a massive conspiracy to fix prices on a laundry list of 45 auto parts. They range from air conditioners to braking systems, ignition coils, door locks and throttles installed in new vehicles over an 18 year period.

Businesses and consumers who purchased or leased new vehicles between July 1, 1998 and September 30, 2016 are eligible for a $25 per vehicle reimbursement for the following brands:

  • Aston Martin.
  • BMW/Mini Cooper.
  • Chrysler/Dodge/Fiat/Jeep/Ram.
  • Ford/Lincoln/Mercury.
  • General Motors (Buick/Cadillac/Chevrolet/Daewoo/GMC/Hummer/Isuzu/Oldsmobile/Pontiac/Saab/Saturn).
  • Honda/Acura.
  • Jaguar/Land Rover.
  • Mazda.
  • Nissan/Infiniti.
  • Subaru.
  • Toyota/Lexus.
  • Volkswagen/Audi/Porsche and Volvo.

Class action attorneys emphasize that no wrongdoing has been alleged by the automakers. Rather, it was the auto parts companies that would have cheated everyone in the supply chain, starting with the manufacturers.

A list of parts, their manufacturers and the individual invoices in the case can be found here.

Some companies can claim more than $10,000

Linda Visser is a partner at Siskinds LLP, based in London, Ont., one of the law firms involved in the class action lawsuits.

Visser told Breaking: Wednesday that the automakers were the first purchasers of the fixed-price parts and were ordered by the court to provide customer information to publicize the settlement.

“They keep a lot of this information for warranty purposes. So we had access to that information to help with the claims administration process to make it easier for people to make claims, including the dealers and the end buyers of new vehicles.”

Linda Visser, a partner at the Siskinds law firm in London, Ontario, says the automakers were the first buyers of the fixed-price parts. (Siskind)

Anyone who signs up through the class action website is eligible to receive up to $25 per new vehicle purchase, according to Visser. While consumers might expect to get less than $100, some businesses — including dealerships and car rental companies — can expect to get up to $10,000, depending on how many cars they’ve purchased.

Visser said the alleged conspiracy was likely discovered when one of the alleged conspirators went to authorities in exchange for an amnesty, similar to how the Competition Bureau discovered Canada’s notorious bread price fixing conspiracy after it was reported by Weston and Loblaws, two of the alleged perpetrators.

“It’s the same basic concept,” she said. “One of the companies involved, their legal department gets a hold of it. In exchange for giving up the story, they get immunity.”

According to the settlement website, anyone who has purchased a new car must rely on customer information provided by the car manufacturers as proof of purchase. Everyone who qualifies will be notified by email or letter between June 28 and July 12 with a user ID and password to access their information.

Car owners who have not received a notification during that time are asked to check their ‘junk’ or ‘spam’ folder.

Lawyers involved in the case say there will be another settlement and those eligible will be notified, but did not give a date for when the court would make a decision.

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