TORONTO -- Two government agencies are being accused of conspiring to drive up prices on some luxury cars imported into Canada in a lawsuit filed this week.
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 court action that is seeking more than $1 billion in damages.
The statement of claim was filed in Ontario Superior Court on Monday on behalf of Fournier Leasing Company Ltd. and Canadian Auto Associates Ltd. and is seeking class-action status.
It alleges the automakers and the government violated competition and consumer protection laws by forcing Canadians to pay excessive fees, ranging in the thousands of dollars, for unnecessary vehicle modifications and approvals on cars imported from the U.S.
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.
Among them, he says, are needing authorization from the manufacturer, which he says charges 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.
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