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Rental vehicles: 3 companies rebuked for misleading advertising

by

Andrea Lubeck

21 March, 2018 09:45

Photo : Freepik

The competition Bureau Canada has pinned the three largest car rental companies in Canada to be announced prices are impossible to obtain. Thus, Enterprise Rent-A-Car (which includes Alamo Rent a Car and National Car Rental) Avis (who also owns Budget) and Hertz (includes Dollar Thrifty) to the imposition of penalties totaling 5.25 million dollars. The industry insurance is a major customer of these companies.

The Office said to impose administrative monetary penalties in order to resolve the concerns in the industry of car rental.

Prices are impossible to obtain

More recently, the Office has imposed an administrative monetary penalty of one million dollars to the Enterprise because it was impossible for consumers to get the price advertised by the company because of the additional fees required. These fees were to raise prices displayed in a variety of media, including on the Web, between 6 and 48 %. The company is also committed to review its advertising practices so that they comply with the law.

The Office also imposed a penalty of three million dollars to the group of Avis and Budget in June 2016 and $ 1.25 million to Hertz and Dollar Thrifty in April 2017.

For both groups, the agency has identified similar practices in view of price partial, where companies implied that the additional costs were imposed by various governments. The Bureau notes that they have done so in order to recover a portion of their own operating costs.

Partnership with several insurers

Several insurers have confirmed to the Journal of insurance have agreements with Enterprise for rental vehicles when to claim auto insurance. Jean-Pascal Lavoie, spokesman for The Capital financial group, has stated that » to [his] knowledge, the prices are always respected.»

Desjardins and Promutuel pointed out, however, that they do not promote one provider over another.

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