Fraud and Help from the Government
Two years ago, the Competition Bureau scored an apparent big win for consumers by forcing Toyota to let their dealers sell for prices less than Toyota "suggested".
"Buying a car is a huge financial outlay for average consumers and we want to make sure that they get the best prices possible," said Richard Taylor, Deputy Commissioner of Competition. "This settlement sends a clear message to Toyota dealers that they are free to sell for less than Access prices."
Closer examination suggests the contrary. Why?
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The consent order, agreed to by Toyota, has the following:
"Under section 34(2) of the Competition Act, the courts can prohibit acts directed towards the commission of an offence without any finding or admission of guilt. The Consent Prohibition Order, which includes no finding or admission of guilt by Toyota, resolves the Competition Bureau's concerns with respect to Toyota's conduct under the Competition Act. Toyota has implemented changes to its administrative and sales practices to meet the terms of the Order."
This innocent sounding legal sound bite makes it all but impossible for any consumer group to sue to get back what they have lost by Toyota's alleged criminal behavior. Section 36 of the Competition Act allows consumers to sue if there has been a criminal violation of the Competition Act, price maintenance is a criminal violation of the Competition Act. But by using section 34(2), the Competition Bureau effectively allowed Toyota to avoid a criminal trial by paying a fine, which went to charity. Either there was a real case against Toyota, in which case consumers have lost. Or, Toyota was bullied by the threat of criminal proceedings to pay a fine. Neither outcome is acceptable.
Technorati Tags: toyota dealers, consumers, competition bureau, due diligence, competition act, richard taylor, big win, offence, prohibit, contrary, apparent, automobile, closer
