Tribunal approves £93m settlement in car delivery charges claim

Approval brings compensation closer for UK motorists and businesses – but the real test will be whether people claim 

Millions of UK motorists and businesses are a step closer to receiving compensation after the Competition Appeal Tribunal approved the final part of a £92.75 million settlement in a collective legal action over inflated car delivery charges.

The claim was led by Mark McLaren, a consumer campaigner, working with law firm Scott+Scott, on behalf of people and businesses who bought or leased new cars and vans between 2006 and 2015.

The Tribunal said the settlement was “just and reasonable.” It accepted that the case was strongly argued, but also noted that taking it all the way to a final court decision would have involved real risks, delays and costs. The Tribunal said the settlement offers a guaranteed outcome for consumers and businesses, rather than leaving compensation uncertain.

The case followed allegations that car delivery changes were unlawfully inflated due to coordinated pricing in the global car shipping industry – with higher costs passed on to UK buyers of vehicles from brands including Ford, Vauxhall, Volkswagen, BMW, Mercedes-Benz, Nissan, Toyota, Citroen and Renault.

The £92.75 million total includes the newly-approved £54 million agreement with shipping giants MOL and NYK following the trial last year, alongside earlier agreements with other defendants.

However, the Tribunal also made clear that approving the settlement is only the first step. The next, and most important, phase will be how the money is paid out, how simple the process is, and whether enough eligible people actually come forward to claim.

Mark McLaren, a consumer champion and former campaigner at Which?, said:

“We are delighted that we have been successful in recovering £92.75 million on behalf of UK consumers and businesses who have overpaid as a result of the cartel. This is a historic outcome as it will be the first time that both UK consumers and businesses will be entitled to compensation through the opt-out regime.

This case proves that collective settlements can be achieved, giving both consumers and businesses an effective and fair route to recover monies owed as a result of anticompetitive conduct. As we enter the distribution phase, my priority is to maximise the take-up by class members.”

The settlement represents over 60% of the approximately £150 million claim originally brought in the case. A further hearing will follow to approve the detailed plan for how compensation will be paid. Sign up to Consumer Voice for updates on when and how to claim your share of the car delivery charges settlement.

The key question now: will people actually claim the compensation?

While the Tribunal has agreed in principle to the settlement, it said the real measure of success will be whether the money actually reaches the people and businesses it’s meant to help. It stressed that getting as many people as possible to claim their share will be crucial – including businesses and fleet customers, who may end up making up a large part of those eligible.

The Tribunal also said there will be another hearing to sign off the full details of how the compensation will be paid out. At this stage, it will take a closer look at how easy it is to claim, how many people are expected to come forward, and how costs and funding arrangements will be handled.

Finally, the Tribunal made clear that approving the settlement does not automatically decide how much lawyers, funders or insurers should receive. Any success-based payments will depend on how much compensation ends up in the hands of the people in the group claim.

What the £92.75 million settlement covers

The £92.75 million total includes settlements from five separate defendant groups involved in the car shipping cartel. The latest £54 million agreement with MOL and NYK follows earlier settlements with “K” Line (£12.75 million), WWL/EUKOR (£24.5 million), and CSAV (£1.5 million).

Cian Mansfield, Managing Partner of Scott+Scott UK LLP said: “The approval of this settlement concludes the litigation and enables compensation for consumers and businesses. The settlement secured highlights the importance of the opt-out regime for achieving access to justice for victims of anticompetitive conduct and returning illegally earned profits to UK consumers and businesses.”

The claim centred on artificially inflated shipping fees for vehicles from major European brands including Ford, Vauxhall, Volkswagen, Peugeot, BMW, Mercedes-Benz, Nissan, Toyota, Citroen and Renault that were purchased or leased between October 2006 and September 2015.

Mark McLaren originally brought the claim seeking approximately £150 million in damages. The £92.75 million settlement represents around 62% of the original claim value.

Who is eligible for compensation

The claim covers UK consumers and businesses who purchased or leased new cars and vans between October 2006 and September 2015 from the affected brands including vehicles from Ford, Vauxhall, Volkswagen, Peugeot, BMW, Mercedes-Benz, Nissan, Toyota, Citroen and Renault.

All eligible consumers and businesses will be automatically included in the settlement at no cost unless they chose to opt out earlier in the process. You do not need to still own the vehicle to be eligible.

When will compensation be paid

The Tribunal confirmed that compensation will not be made available immediately. A further approval process will determine how claims are made, how take-up will be maximised, and how compensation will be allocated between individual consumers and businesses.

The amount received by each claimant will depend on factors including the number of eligible vehicles and overall take-up. The Tribunal noted that individual payments are likely to be modest, but that fleet and business claims may represent a significant proportion of the total distribution of compensation.

Sign up to Consumer Voice to receive notifications about when you can claim your share of the settlement and for updates on other consumer compensation cases.

Car delivery charges claim: FAQs

How much compensation will I receive?
The amount per person or business has not yet been confirmed. The Tribunal noted that individual payments are expected to be relatively small, while businesses and fleet operators may receive higher amounts depending on the number of vehicles claimed.

When will I receive my compensation?
Distribution will begin after the Tribunal approves a detailed distribution plan at a further hearing. This process is expected to take several months.

Do I need to have bought a specific brand of car?
The claim covers vehicles from Ford, Vauxhall, Volkswagen, Peugeot, BMW, Mercedes-Benz, Nissan, Toyota, Citroen and Renault purchased or leased between October 2006 and September 2015.

What if I no longer own the vehicle?
You may still be eligible for compensation even if you no longer own the vehicle you purchased or leased during the relevant period.

Do businesses qualify for compensation?
Yes, this is the first opt-out collective action where businesses will receive compensation alongside consumers. UK businesses that purchased or leased eligible vehicles during the relevant period can claim.

Where can I find more information?
You can find more information on our car delivery charges claim page, which we will keep updated with key developments. If you sign up to our newsletter we will also email you with any updates.