Canadians to start getting payments from $78M auto parts settlement
Canadians have started receiving payments from a massive nationwide auto parts class action settlement, which was reached three years ago.
In June 2023, courts in Toronto, Vancouver, and Quebec City approved the auto parts settlement totalling approximately $78 million in 23 class actions alleging “unlawful conspiracies to fix prices of auto parts for installation in new vehicles,” according to the law firms.
An update on the settlement site announced that payments began on Thursday, Aug. 28, via e-transfer or cheque to approved claims in the second auto parts distribution.
While the defendants did not admit any wrongdoing or liability, there were extensive criminal investigations around the globe surrounding price-fixed auto parts, according to a statement from the law firms.
“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,” said David Jones, a partner at Camp Fiorante Matthews Mogerman LLP in Vancouver.
The affected car brands range from Toyota to Jaguar. The law firms noted that no wrongdoing is alleged against these brands.
“They are not defendants in the class actions. The class actions were brought against the parts manufacturers who allegedly price-fixed those products,” read a news release.
Who’s eligible for the auto parts settlement payment?
Canadians must have purchased and/or leased a new passenger car, sport utility vehicle, van, and/or light pick-up truck (up to 10,000 pounds) from the car makers during the relevant period listed below:
Auto Parts Class Action
How much money you receive is proportional to the value of your claim relative to the value of all approved claims. The class action anticipates all claims will receive a minimum payment of $25 per claim, not per vehicle.
Important details about settlement payments
According to the class action site, an email was sent on Wednesday, Aug. 27, from donotreply@e.ricepoint.com to claims being paid by e-transfer that contains their security answer, which is the person’s birthday month spelled in full (January, June, December; not Jan, Jun, Dec).
It added that e-transfer payments are valid for 30 days, and cheques will be valid for four months after issuance.
Make sure you enter the correct security answer. If you answer it wrong three times, your payment will be blocked.
“If you are having trouble and make two errors while typing in the Security Answer, please call the Claims Administrator at 1-866-474-4331 for assistance before making a third attempt,” stressed the site. “If the payment expires, you will forfeit your compensation.”
If you didn’t receive a payment, the class action site said it was likely rejected due to duplication or potential fraud. You can contact the claims administrator autoparts@ricepoint.com to request a review of your claim.