A class-action lawsuit filed with the Ontario Superior Court alleges Transport Canada, Canada Border Services Agency (CBSA), BMW and Mercedes-Benz participated in a conspiracy to impose unnecessary procedures and import fees that make importing vehicles into Canada artificially high. This is a big problem for many Canadians, since car prices are might higher north of the U.S. border, despite both countries' dollars being nearly equal.

The lawsuit was filed by Fournier Leasing Co. Ltd. and Canadian Auto Associates Ltd. and seeks more than $1 billion in damages, according to the Globe and Mail.

The two vehicle leasing companies allege other carmakers don’t require the same fees, modifications or approvals as BMW or Mercedes-Benz and are, in fact, not prescribed under Canadian law, making for a double standard.

As luxury cars are believed to make up the majority of the record 189,738 vehicles imported into Canada in 2007, when the Canadian dollar was at its highest in nearly 30 years, it is a small wonder the lawsuit names BMW Canada, Mercedes-Benz Canada and Mercedes-Benz USA for reducing competition.

Prices of Canadian vehicles are 20 to 35 percent higher than similar or identical models sold in the US. A class action lawsuit was filed late last year over the high prices.

The leasing companies who filed the lawsuit also maintain they were forced to make modifications to the cars they were importing at Mercedes-Benz and BMW dealerships are instead of at repair shops of their choice, where prices for said services were more reasonable.

Because of the hassle and fees it imposes on importers of its cars, Mercedes-Benz Canada artificially inflates prices of its new cars, the lawsuit alleges.

An example of the exorbitant fees includes BMW charging $350 for a letter of admissibility and $500 for a letter stating if a vehicle has seen any recalls that pertain to it.