Competition Bureau Settles Price Maintenance and Misleading Advertising Case Regarding the Access Toyota Program

OTTAWA, March 28, 2003 — The Competition Bureau announced today that it has settled a price maintenance and misleading advertising case involving Toyota Canada Inc. and its Access Toyota Program. The settlement ensures that consumers will have every opportunity to negotiate prices for Toyota vehicles.

"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."

The parties have agreed to a Consent Prohibition Order issued by the Federal Court of Canada requiring Toyota to amend its sales, promotion, training and monitoring practices for the Access Toyota Program. The amended Access Toyota Program will be permitted to continue and Toyota may extend it to other parts of Canada. As part of the settlement, Toyota has made voluntary donations totalling $2.3 million to several charitable organizations across Canada.

The Bureau's inquiry addressed allegations of price maintenance, namely that Toyota was prohibiting dealers under the Access Toyota Program from selling vehicles below "Access/Drive-Away Prices." The inquiry also raised an issue under the misleading representation provisions of the Competition Act because the Access Toyota Web site indicated that Access Toyota dealers could sell for less than Access/Drive-Away Prices without being penalized by Toyota.

Under the price maintenance provisions of the Competition Act, it is a criminal offence to attempt to influence upward or discourage the reduction of resale price by threat, promise, agreement or other like means or to refuse to supply or otherwise discriminate against a person because of their low pricing policy. Under the Act's misleading representations provisions, it is also a criminal offence to knowingly or recklessly make a representation to the public that is false or misleading in promoting a product or service.

"Toyota fully cooperated with the Bureau's investigation and its willingness to address the Competition Bureau's concerns regarding the Access Toyota Program, without costly litigation for taxpayers, was an important factor in settling this case," added Mr. Taylor.

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.

The Competition Bureau is an independent law enforcement agency that promotes and maintains fair competition so that all Canadians can benefit from competitive prices, product choice and quality service. It oversees the application of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act.

Court Documents
Prohibition Order (PDF: 1 197KB)
Agreed Statement of Facts (PDF: 472 KB)

If the following documents are not accessible to you, please contact the Competition Bureau's Information Centre Toll free: 1-800-348-5358, Phone: 819- 997-4282 TDD (hearing impaired): 1-800-642-3844 for alternate print formats.

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André Leclair
Senior Communications Advisor
Communications Branch
819-953-4257 or (613) 290-1583 (cell)

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