Canada - Competition Bureau takes action against alleged false or misleading car rental advertising

The Competition Bureau has taken action against what it considers to be deceptive marketing practices by two of Canada’s largest rental car companies, Aviscar and Budgetcar, and their parent company, Avis Budget Group Inc.

The Bureau has filed an application with the Competition Tribunal seeking an end to alleged false or misleading price representations by Avis and Budget, a total of $30 million in administrative monetary penalties from the three companies, and refunds for consumers.

The Bureau’s investigation found that Avis and Budget advertise prices for vehicle rentals and other associated products that are not attainable due to additional fees imposed during the rental process. Furthermore, these fees are characterized as taxes, surcharges and fees that governments and agencies require Avis and Budget to collect from consumers. In fact, Avis and Budget impose these charges to recoup part of their own cost of doing business. As a result, consumers end up paying higher prices or receiving lower discounts than advertised.

Read the press release.