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1. The Effects of Uniform Pricing on Canadian Consumers - $62,600

"Negotiating the price of a new vehicle is a daunting task which leaves many consumers feeling frustrated and cheated. In 1990, General Motors responded by launching the Saturn line of automobiles and a "no-haggle" or uniform price policy and in 2000, Toyota followed. After a 2003 CBC News investigation revealed that vehicle prices are elevated in regions of uniform pricing, Toyota Canada agreed with the Competition Bureau to withdraw from the Access Toyota program, but did not eliminate it."

"Uniform vehicle pricing appears very similar to ordinary price-fixing. Its effect on the prices consumers pay for their vehicles should be determined before the practice becomes widespread."

ACC will train and send operatives to six provinces or regions of Canada, three with an Access Toyota program in place and three without such a program. In each province or region selected, operatives will follow the same procedure to obtain firm selling price offers for a specifically equipped Toyota model vehicle from five Toyota dealers. As well, ACC operatives will obtain firm selling prices offers for a similar equipped alternative make and model vehicle from five non-Toyota dealers.

Before selecting the specific Toyota model and trim to be used in the study, an analysis of national vehicle sales will be performed to determine which model would be likely to represent the greatest impact in the marketplace, and which alternative(s) would be most appropriate. If more than one alternative model is used, the mix of alternative model types will remain precisely the same in each of the six provinces or regions visited.

The gathering of all 60 price will not be done instantaneously so, during the period when vehicle price data is being collected, the Toronto prices (not the MSRP but the actual selling prices) of the Toyota and the alternate vehicle models will also be tracked weekly (or more often) to monitor any changes over the collection time. The prices will then be compiled, normalized for any price changes over time, and analyzed by the ACC project leaders and the consulting economist in the context of market share data. The analyst will be written up in a comprehensive report.

The ACC will consult with an established professional economist (e.g. attached to a university) to ensure that the best protocols are used and to eliminate any flaws in both the structure of the study or in the manner that the data are collected.

This study will also examine the possibility of alternative pricing strategies that may provide much of the benefit of "no haggle" pricing while retaining full competition - that is, without the disadvantage to consumers of the price maintenance and price-fixing aspects associated with such programs.

A full report will be issued containing the results and methodology, along with a discussion of the adequacy of the existing Competition Act in addressing this issue, will be released. The ACC will meet and discuss its results with appropriate government officials (especially in the Competition Bureau). The ACC will also make the results of the study known directly to the public through its own media outlets and through interviews and interviews in other media.