Ten of the world’s leading car manufacturers – along with two major automotive trade associations – have been fined over £77 million by the UK’s Competition and Markets Authority (CMA) after admitting to illegal collusion on green advertising practices.
The watchdog found that BMW, Ford, Jaguar Land Rover, Peugeot Citroën, Mitsubishi, Nissan, Renault, Toyota, Vauxhall, and Volkswagen had “illegally agreed” not to compete when advertising how recyclable their cars were at the end of their lifecycle. With the exception of Renault, the manufacturers also agreed not to disclose how much recycled material was used in their vehicles — limiting transparency for environmentally conscious car buyers.
The European Automobile Manufacturers’ Association (ACEA) and the Society of Motor Manufacturers and Traders (SMMT) were also implicated, accused of facilitating the agreements among manufacturers.
The cartel agreement was known internally as the “ELV Charta”, or informally, a “gentleman’s agreement”, and was in effect from May 2002 until September 2017 — with Jaguar Land Rover joining in 2008.
The scheme came to light after a tipoff from Mercedes-Benz, which cooperated with the CMA’s investigation and was granted immunity from financial penalties under the leniency policy.
The CMA said this illegal behaviour harmed consumers by restricting access to information needed to make informed choices about the environmental credentials of vehicles.
“Colluding to restrict competition is illegal — and that extends to how you advertise your products,” said Lucilia Falsarella Pereira, senior director of competition enforcement at the CMA.
“This kind of collusion limits consumers’ ability to make informed choices and reduces the incentive for companies to invest in environmental progress.”
Following the CMA’s probe, SMMT, Stellantis (owner of Opel, Peugeot Citroën and Vauxhall), and Mitsubishi also applied for leniency, leading to reduced fines in return for cooperation.
A spokesperson for Renault, which was fined in both the UK and the EU, noted that the offending practices took place “at a time when the ELV recycling sector was still nascent” and argued the collusion “did not financially harm consumers”.
The European Commission has also fined 15 carmakers and ACEA €458 million (£383 million) following its own parallel investigation launched in 2022 into the same cartel across EU markets.
The CMA emphasised that the case shows its determination to pursue anti-competitive practices that threaten both consumer rights and innovation, especially as the environmental claims of companies face greater public scrutiny.
The 10 manufacturers fined in the UK were contacted for comment, and the CMA’s investigation is considered one of the most significant in recent years to target greenwashing through collusion.
