Payments Now Rolling Out from Massive Nationwide Lawsuit Over Price-Fixing Scandal
Canadians are now beginning to receive payments from a long-awaited $78 million national class action settlement involving illegal price-fixing in the auto parts industry. The settlement—approved by courts in Toronto, Vancouver, and Quebec City in June 2023—centers around allegations that several auto parts manufacturers conspired to fix prices, leading to higher costs for new vehicle buyers and lessees across Canada.
This legal action spans 23 separate class action lawsuits, marking one of the largest antitrust settlements in Canadian history related to the automotive industry.
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What Was the Auto Parts Class Action Settlement About?
The lawsuits alleged that manufacturers of various auto parts engaged in unlawful price-fixing conspiracies, violating Canada’s Competition Act. These schemes artificially inflated the cost of parts installed in new vehicles, which in turn increased prices for consumers and businesses.
According to David Jones, a partner at Camp Fiorante Matthews Mogerman LLP in Vancouver:
“Price-fixing conspiracies are prohibited by the Competition Act. They are harmful to the Canadian marketplace, causing businesses and consumers to pay too much for goods and services.”
While none of the companies involved in the settlement admitted guilt, global investigations uncovered widespread anti-competitive practices in the industry.
Which Car Brands Were Affected?
The class action did not name automakers like Toyota or Jaguar as defendants. Instead, it targeted the parts manufacturers responsible for fixing prices on components used in vehicles sold by these brands.
In short, the car brands themselves are not accused of wrongdoing. Rather, the allegations were focused solely on the suppliers who sold parts to these manufacturers.
Who Is Eligible for a Payment?
You may qualify for a payment if you meet the following criteria:
- You purchased or leased a new:
- Passenger car
- SUV
- Van
- Light-duty pick-up truck (weighing under 10,000 pounds)
- The purchase or lease occurred during the relevant class period (details provided on the official settlement site).
- The vehicle was purchased or leased in Canada.
Note: The payout is not per vehicle, but per claim. Eligible claimants can expect a minimum of $25, with the final amount depending on the total value of all valid claims filed.
When and How Are Payments Being Sent?
Second Distribution Began on August 28
The latest round of payments started on Thursday, August 28, 2025. Depending on your chosen method during the claims process, you will receive your compensation either:
- Via e-transfer (Interac)
- Or by cheque in the mail
What You Need to Know About E-Transfers
If you opted for an e-transfer, the class action website reports the following:
- An email was sent on Wednesday, August 27, from
- This email contains the security answer required to deposit your payment.
- Your security answer is your birth month spelled out in full (e.g., January, not Jan).
- You have 30 days to accept the e-transfer before it expires.
- If you make three incorrect attempts at answering the security question, your payment will be blocked.
Important Tip:
If you make two incorrect attempts, call the Claims Administrator before trying again at 1-866-474-4331 for help.
What If You Chose to Receive a Cheque?
Cheques are also being sent out and are valid for four months after the issue date. Make sure to cash or deposit it before it expires to avoid forfeiting your compensation.
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Didn’t Receive a Payment? Here’s What You Can Do
If you did not receive a payment, your claim may have been:
- Rejected due to duplication
- Flagged for potential fraud
Stay Informed and Take Action Before It’s Too Late
This massive settlement is a rare opportunity for Canadian consumers to receive compensation after years of legal proceedings. If you submitted a claim, now’s the time to check your email or mailbox and act quickly to secure your funds.