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Class action launched over delivery costs

It is believed an alleged cartel added up to £60 onto the price of eight in 10 new cars and vans sold in the UK between October 2006 and September 2015.
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2 March 2020

LAWYERS are preparing to launch a US-style class action against five shipping firms to try to win money back for consumers, claiming they conspired to fix delivery costs.

It is believed the alleged cartel added up to £60 onto the price of eight in 10 new cars and vans sold in the UK between October 2006 and September 2015.

Customers affected include those who bought from Ford, Vauxhall, Volkswagen, Peugeot, BMW, Mercedes-Benz, Nissan, Toyota, Citroen and Renault, between those dates.

Some 17 million cars are said to have been affected over those 10 years.

At the heart of the case is the line near the end of every customer’s new-car bill which reads: “Plus delivery”.

The amount of  payment varied based on how far the car may have travelled, including from the Far East and the US.

The maximum delivery payment is £60 with an average of around £9 per car. But if a a number of new cars have been bought or leased during this period the sums can quickly add up according to legal firm Scott+Scott which is bringing the action.

 

An EU investigation in 2018, EU watchdogs found five shipping firms guilty of running an anti-competitive price-fixing cartel and had coordinated tenders, allocated customers, conspired on capacity reductions, and exchanged commercially sensitive pricing information to maintain or increase shipping prices.

All the companies acknowledged their involvement and agreed to settle the cases. Lawyers pointed out that car-makers are not guilty parties, and they, too, have been outraged.

The five companies are Japanese carriers MOL, K Line, and NYK, Sweden’s WWL/EUKOR, and Chile’s CSAV. Although not household names, their role in moving cars around the world is huge.

If the class action case is successful anyone who bought an affected vehicle will be automatically entitled to money back. They will be required to provide details and proof of purchase or lease.

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Chris Wright

Chris Wright

Chris Wright has been covering the automotive industry nationally and internationally for 30 years. Following spells with consumer titles he became News Editor of Automotive Management (AM), Editor of Automotive International, International Editor for Detroit-based Automotive News, and Editor of Dealer Update. He has also co-authored several FT Management Reports and contributes regularly to Justauto.com

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