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Ottawa sued over luxury car import fees

Last Updated: Thursday, February 28, 2008 | 12:03 PM ET

CBC News

Canadians are paying excessive fees for unnecessary vehicle modifications and approvals when they import Mercedes and BMW cars from the United States, says a lawsuit filed this week.

Fournier Leasing Company Ltd. and Canadian Auto Associates Ltd. filed a statement of claim in Ontario Superior Court on Monday that alleges two government agencies conspired to drive up prices on some luxury cars imported into Canada.

Transport Canada and Canada Border Services Agency are named along with BMW Canada Inc., Mercedes-Benz Canada Inc. and Mercedes-Benz USA LLC in the class action seeking more than $1 billion in damages.

Many Canadians buy and import luxury vehicles from the U.S., where prices are generally lower.

The companies allege the automakers and the government violated competition and consumer protection laws by forcing Canadians to pay thousands of dollars for unnecessary vehicle modifications and approvals.

Lawyer Brian Osler claimed in an interview with the Canadian Press on Thursday that Transport Canada and the car companies have different procedures for importing Mercedes and BMW cars than vehicles from other automakers, which he says result in stiff fees for everything from vehicle inspections to providing recall information, contrary to the Consumer Protection Act and Competition Act.

The suit also alleges people have been paying artificially inflated prices for new Mercedes vehicles in Canada because these additional costs imposed on importers restrict competition in the Canadian market.

Mercedes-Benz Canada spokeswoman JoAnne Caza said Thursday her company had not been served and was not in a position to comment on the lawsuit.

None of the charges has been proven in court.

With files from the Canadian Press

This story is now closed to commenting.

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Ottawa sued over luxury car import fees

Last Updated: Thursday, February 28, 2008 | 12:03 PM ET

CBC News

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