Antitrust Law Daily Wrap Up, ADVERTISING NEWS: Hyundai and Kia enter consent agreements with Canada Competition Bureau concerning fuel consumption advertising, (Aug 6, 2013)

By Jody Coultas, J.D.

Automobile distributors Hyundai Auto Canada Corp. and Kia Canada Inc. reached consent agreements with the Canada Competition Bureau to formalize steps the distributors have taken to correct inaccurate fuel consumption ratings advertising, according to a Bureau announcement.

The consent agreements required that Hyundai and Kia compensate affected customers for the cost associated with the difference between the affected vehicle’s advertised and corrected fuel consumption ratings for the entire time the vehicle is or was owned; add an additional 15% to affected customers’ compensation entitlement as an acknowledgement of the inconvenience caused to affected consumers; and issue the compensation in the form of personalized prepaid credit cards that will be issued each time an affected consumer makes a request, for as long as an affected customer owns an affected vehicle.

Performance claims made to Canadians must be based on adequate and proper testing, regardless of where the testing is conducted. The fuel consumption ratings in this instance were based on testing conducted in Korea.

The federal Competition Act prohibits businesses from making materially false or misleading representations for the purpose of promoting products or business interests, the Competition Bureau said.

Companies: Hyundai Auto Canada Corp.; Kia Canada Inc.

News: Advertising