Ten major car manufacturers and two industry groups have been fined nearly £78 million by the UK’s Competition and Markets Authority (CMA) for withholding critical information about vehicle recycling from consumers. The fined companies include BMW, Ford, Jaguar Land Rover, Peugeot Citroen, Mitsubishi, Nissan, Renault, Toyota, Vauxhall, and Volkswagen.

The CMA found that these companies, along with two trade organizations, agreed not to inform customers about the recyclability of their cars and what percentage of the vehicle could actually be recycled. Additionally, these carmakers withheld details on the amount of recycled materials used in their vehicles.

 

European Commission Fines Car Manufacturers for Recycling Law Violations

The European Commission also issued a €458 million fine to 15 carmakers and the European Automobiles Manufacturers' Association (ACEA) for breaking EU recycling laws. Teresa Ribera, executive vice-president for the Commission's clean energy transition arm, emphasized that such actions are not tolerated, stating, "We will not tolerate cartels of any kind, and that includes those that suppress customer awareness and demand for more environmentally-friendly products."

The CMA revealed that, with the exception of Renault, the fined carmakers also agreed not to disclose how much of their vehicles were made from recycled materials, suppressing key details from potential buyers. This illegal conduct lasted for 15 years, starting in 2002.

 

The Buyers' Cartel and Illegal Agreements

The CMA also discovered that eight of the fined manufacturers participated in a "buyers' cartel", alongside other carmakers who joined later. The cartel agreed not to pay companies to handle recycling when their cars reached the end of their lifecycle. This was a significant violation of both UK and EU laws governing vehicle recyclability and consumer transparency.

Both ACEA and the Society of Motor Manufacturers (SMMT) were implicated in these illegal agreements, with the latter fully cooperating with the investigation and accepting the findings.

 

Legal Requirements and Ongoing Compliance

Under current UK law, carmakers must include details about vehicle recyclability in their advertisements, allowing customers to factor this into their purchasing decisions. All the manufacturers and industry bodies involved have now settled with the CMA, admitting to their part in this illegal activity and agreeing to pay the imposed fines.

SMMT has stated that it takes its competition law obligations seriously and has reviewed and strengthened its internal protocols to ensure future compliance with the law. Mercedes-Benz, which was granted immunity, was not subject to penalties.

 

For any enquiries or information, contact info@thelawreporters.com or call us on +971 52 644 3004. Follow The Law Reporters on WhatsApp Channels