Up to $290.5 million in compensation for Canadians in Volkswagen, Audi and Porsche emissions case

Volkswagen and Audi to pay $2.5 million in penalties

January 12, 2018 – OTTAWA, ON – Competition Bureau

The Competition Bureau participated in a proposed Canadian class action settlement agreement reached by Volkswagen, Audi and Porsche with buyers or lessees of certain 3.0 litre diesel vehicles. This settlement, if approved by the courts, will provide them with buyback, repair and restitution payments totalling up to $290.5 million. The Bureau also reached a consent agreement with the three Canadian automobile distributors under which Volkswagen Canada and Audi Canada committed to paying a total monetary penalty of $2.5 million.

The consent agreement, which is registered with the Competition Tribunal and has the force of a court order, was negotiated to address the Bureau’s conclusions that false or misleading environmental marketing claims were used to promote certain vehicles with 3.0 litre diesel engines. The Bureau’s investigation found that:

• Volkswagen Group Canada Inc. (Volkswagen Canada) and Audi Canada Inc. (Audi Canada) misled consumers by promoting vehicles sold or leased in Canada as having clean diesel engines with reduced emissions that were cleaner than an equivalent gasoline engine.
• Porsche Cars Canada, Ltd. (Porsche Canada) misled consumers by promoting vehicles sold or leased in Canada as having engines in compliance with emissions standards to which their affected vehicles were certified.

The vehicles passed applicable emissions tests because software was installed that altered the operation of the vehicle during testing which appeared to have the effect of reducing emissions during testing.

Today’s resolution brings an end to the Bureau’s investigation. Last year’s 2.0 litre diesel vehicles settlement and today’s settlement result in up to $2.39 billion in compensation for Canadian consumers. Volkswagen Canada and Audi Canada will have paid $17.5 million in monetary penalties.

Quotes

“We appreciate the companies’ substantial cooperation with our investigation and the resolution of this matter. This second settlement and consent agreement is a satisfactory conclusion to a high profile consumer deceptive marketing case. Cars represent a significant investment for Canadian families and we are pleased that they will receive the compensation they deserve from these misrepresentations.”

John Pecman,
Commissioner of Competition

Quick Facts

• In December 2016, the Bureau announced that Volkswagen and Audi would pay up to $2.1 billion to consumers and a $15 million monetary penalty for making similar marketing claims to promote certain vehicles with 2.0 litre diesel engines.

• Approximately 20,000 vehicles with 3.0 litre diesel engines in Canada were affected.