Advertised prices unattainable and illegal
Anyone who has rented a car and been jammed with unexpected additional fees will be pleased to know that the Competition Bureau of Canada just kicked the butt of several major rental companies for deceptive pricing practices.
Through a consent agreement, both Hertz Canada Limited (Hertz) and Dollar Thrifty Automotive Group Canada Inc. (Dollar Thrifty), admitted wrongdoing by advertising prices that were unattainable due to the forced inclusion of unadvertised fees. According to the Bureau, the advertising was “misleading” due to mandatory fees which accompanied the advertised price, increasing it by as much as 57%.
Hertz and Dollar/Thrifty have agreed to pay a combined total of $1.25 million in administrative penalties and implement new procedures to ensure that their future advertising complies with the law.
The commissioner of competition, John Pecman, had this to say about the case against Hertz and Dollar/Thrifty:
“Enhancing Canadians’ trust in the digital economy is a priority for the Bureau. Today’s resolution will address any remaining issues in Hertz and Dollar Thrifty’s advertising, including online. The two companies proactively and voluntarily took steps to address the conduct and will make further changes to ensure consumers are provided with accurate information.”
Hertz and Dollar/Thrifty aren’t the only rental companies to feel the Commissioner’s hammer of late. Avis and Budget rentals paid $3 million in penalties in June of 2016 for similar unethical advertising practices.