Toronto, Ontario – A class action lawsuit has been filed against the Ford Motor Company of Canada, Chrysler Canada, Honda Canada, Toyota Canada and Nissan Canada. The lawsuit alleges that the auto manufacturers have misrepresented extra charges added to the sale price of new vehicles. 

The lawsuit was filed by several people who purchased or leased new vehicles directly from manufacturer-authorized dealers. The vehicle buyers are represented by lawyers Brian Osler, Glyn Hotz and Darrel Hotz.

The lawsuit alleges that charges such as delivery, inspection and administration fees exist only to boost and disguise the true sale price of a vehicle, and objects in particular to the $100 federal excise tax on air conditioners. The lawsuit said that no such tax is applicable on the sale of a new vehicle by dealers to consumers, and that the manufacturers and dealers have misrepresented the charges and deceived buyers into believing that it is a tax they are obligated to pay on their purchase. The lawsuit also said that the manufacturers have to pay a $100 excise tax when they produce or import a vehicle, but this tax is not payable by consumers.

“They put down that it’s a tax right on the face of the sales contract,” Hotz said. “They also call it an applicable tax. However, it’s not something the consumer even has to pay.”

The lawsuit alleges that the defendants have similar advertising, websites and sales practices that deceive people into believing they have to pay a $100 tax. The plaintiffs are seeking restitution of the charges they paid that were represented as an excise tax. “The manufacturers and dealers tell you that there is an excise tax,” Osler said. “The reality is there is no $100 excise tax on a retail sale and they know it. They don’t hand the money over to the government. It just ends up in their own pocket.”

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