Drivers of certain popular vehicles could benefit from compensation payouts as massive UK trial begins
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GB NEWS
UK drivers could be set to receive significant payouts for a motoring scandal which saw millions overpay on vehicle shipping costs for years.
It comes after a major trial begins today against two of the world's largest shipping companies which have been accused of inflating prices on travel costs for importing cars into the UK.
The nine-week trial at the Competition Appeal Tribunal will see shipping conglomerates MOL and NYK face claims valued at approximately £100million.
The two shipping giants represent 47.7 per cent of an alleged cartel accused of inflating delivery costs for new cars and vans in the UK.
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Drivers who bought cars between 2006 and 2015 could have overpaid on shipping costs
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The case, led by consumer champion Mark McLaren, follows successful settlements with three other shipping firms implicated in the scheme.
The three shipping companies have already agreed to settlements totalling £38.75million in the case with the remaining two set to appear in court today.
According to Consumer Voice, the most recent settlement, approved by the tribunal, saw WWL/EUKOR and "K" Line agree to pay £37.25million. This followed an earlier £1.5million settlement with CSAV approved in December 2023.
The shipping companies were accused of operating a price-fixing scheme that involved coordinating rates, allocating tenders, coordinating market capacity reductions and exchanging commercially sensitive information.
The European Commission previously fined shipping firms a total of £327million for violating EU competition law through these practices.
The allegations potentially affect more than 17 million cars and vans purchased in the UK between October 2006 and September 2015.
Major automotive brands impacted included Ford, Vauxhall, Volkswagen, Peugeot, BMW, Mercedes-Benz, Nissan, Toyota, Citroen and Renault.
Most of these manufacturers produce vehicles outside Europe and ship them into the UK, with delivery costs typically divided equally among all vehicles sold.
However, the car companies themselves are not accused of wrongdoing, as they simply passed on the shipping costs to customers, either within the listed price or as an additional charge.
Mark McLaren, who is leading the class action, said: "We believe that the cartel meant that car manufacturers paid too much to transport new vehicles from their factories around the world to the UK and Europe.
“In turn, customers who bought a new car or van between [the period] are also likely to have paid too much by way of delivery charge.
"I have spent much of my career working in consumer protection and feel strongly that consumers and businesses harmed by unlawful conduct should be compensated."
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Previous shipping cases have resulted in 'positive' outcomes for drivers
PA
McLaren, a former Parliamentary and Legal Affairs Manager at Which?, explained that drivers who bought or leased new cars and vans within the time frame could be eligible for compensation of up to £60 per vehicle. But, drivers who purchased multiple vehicles during this period may be entitled to claim more.
Belinda Hollway, Partner at Scott+Scott London, called the recent settlements "a very positive development for class members".
GB News has contacted the impacted companies for a comment.
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