A class action lawsuit has been filed alleging major automakers and dealers violated competition and consumer protection laws by conspiring to artificially inflate car prices in Canada. The lawsuit was filed in Ontario Superior Court alleging North American auto manufacturers jacked up the price of new cars to discourage Canadians from buying automobiles in the US.
The suit was filed on behalf of anyone who bought a new car between August 2005 and August 2007 and names Honda, Nissan, Chrysler, and GM in both Canada and the US as defendants as well as the Canadian Automobile Dealers Association and the National Automobile Dealers Association,
In the past, auto dealers have used the large gap between the Canadian and US dollar to justify the higher prices in Canada. However, now that the dollar is almost at par dealers are unable to use that excuse to mask anticompetitive practices.
