The UK’s regulator has fined 10 manufacturers and two trade bodies for breaking competition law in relation to vehicle recycling and related advertising claims.

The CMA found manufacturers illegally agreed not to compete against one another when advertising what percentage of their cars can be recycled

After an investigation by the Competition and Markets Authority (CMA), the carmakers and business groups admitted their involvement in the illegal behaviour and agreed to pay fines totalling over £77m.

The investigation found the manufacturers illegally agreed not to compete against one another when advertising what percentage of their cars can be recycled. They also illegally colluded to avoid paying third parties to recycle their customers’ scrap cars.

Those fined include BMW, Ford, Jaguar Land Rover, Peugeot, Citroën, Mitsubishi, Nissan, Renault, Toyota, Vauxhall and Volkswagen.

Mercedes-Benz was also involved in these agreements but was exempted from paying a financial penalty as it tipped off the CMA to its participation via the authority’s leniency policy.

Manufacturers are legally required to include details on recyclability in their advertising materials, so customers can take this into account when considering a vehicle’s green credentials before buying.

In this case, the CMA found that all manufacturers illegally agreed that they would not advertise if their vehicles went above the minimum recyclability requirement of 85% (even if the actual percentage was higher). With the exception of Renault, the manufacturers also agreed not to share information with their customers about the percentage of recycled material used in their vehicles.

Failing to compete against one another in this way is illegal and also meant customers buying a car from one of these manufacturers were unable to fully compare the green credentials of vehicles when buying, which could have affected their choice.

The CMA also said such practices may also lower the incentive for companies to invest in green initiatives.

The UK watchdog found that most manufacturers took part in this practice from May 2002 to September 2017, with Jaguar Land Rover joining in September 2008. The agreement was set out in a document called the ‘ELV Charta’ – sometimes referred to as a ‘gentleman’s agreement’ – and sought to “avoid a competitive race” amongst the manufacturers in relation to advertising claims of this kind. This agreement was referenced in emails, internal documents and meeting minutes, and certain manufacturers challenged others when they breached this agreement.

The European Commission (EC) launched a parallel probe alongside the CMA in March 2022 and levied fines totalling €458m (£391.7m) against 15 major carmakers. These include Volkswagen, Renault, BMW, Ford, Toyota, Honda, Hyundai, Jaguar Land Rover, Mazda, Mitsubishi, Suzuki, Opel and Volvo.

Two trade associations, the European Automobile Manufacturers’ Association (ACEA) and the UK’s Society of Motor Manufacturers and Traders (SMMT), were involved in both illegal agreements.

Lucilia Falsarella Pereira, senior director of competition enforcement at the CMA, said: “Agreeing with competitors the prices you’ll pay for a service or colluding to restrict competition is illegal and this can extend to how you advertise your products. This kind of collusion can limit consumers’ ability to make informed choices and lower the incentive for companies to invest in new initiatives.”

She added: “We recognise that competing businesses may want to work together to help the environment – in those cases our door is open to help them do so.”

All of the carmakers and industry bodies, except for Mercedes-Benz which was granted immunity from penalties, have now settled with the CMA – meaning they have admitted to taking part in illegal behaviour and agreed to pay fines totalling £77,688,917.

The manufacturers and industry bodies have until 2 June 2025 to pay.