VW’s £1.27 billion settlement in Canada in relation to the emissions scandal

Following several settlements in the U.S., the VW Group has recently reached a 1.27 billion pound settlement for the findings of anti-competitive practice in Canada.

Canada’s Competition Bureau has reached an agreement with the German manufacturers in a class action settlement for the “false and misleading” marketing in relation to their 2.0 litre diesel vehicles.

Approximately 105,000 vehicles in Canada are reportedly affected.

If approved by the courts, the settlement will be one of the “largest consumer settlements in Canadian history”. This seems to be a trend as the settlements in the U.S. have been noted as one of the largest class action suits in U.S. history too. Put simply – the German manufacturer is paying the price for the emissions scandal.

As a result of this settlement, the Competition Bureau has reached a further consent agreement with both VW Canada and Audi Canada that can provide an additional penalty of £9.03 million. The consent agreement will address the Competition Bureau’s findings that the VW Group used “false and misleading” environmental marketing claims in order to promote some of their 2.0 litre diesel vehicles.

The £1.27 billion settlement doesn’t address the 3.0 litre diesel vehicles, which are still under investigation.

VW’s “false and misleading” claims

The Competition Bureau’s probe found that VW Canada and Audi Canada had misled consumers by promoting their vehicles – whether sold or leased – as having clean diesel engines with reduced emissions. The investigation also found that VW had marketed vehicles as “cleaner than an equivalent gasoline engine sold in Canada”.

There is little doubt that this could have “duped” consumers in to buying and/or leasing these 2.0 litre vehicles with the belief that it would be cleaner and more environmentally friendly.

VW consumers deserve transparency

The Commissioner of Competition, John Pecman, highlights the importance of transparency:

“Consumers expect and deserve truth in advertising, particularly when it relates to such a significant investment. We are pleased that Canadians will now begin to receive compensation and that Volkswagen Canada and Audi Canada will address the impact this matter has had on the marketplace. The Bureau works to ensure that Canadians can trust advertising claims made by businesses and can be confident in their purchasing decisions.”

As yet another settlement looms on the horizon, U.K. owners continue to be left frustrated as they are refused compensation by the German automotive giants.