Antitrust Law Daily Wrap Up, ADVERTISING NEWS: Canada Competition Bureau takes action against allegedly misleading car rental advertisers, (Mar 11, 2015)
Organizations Mentioned:Avis Budget Group, Inc. | Aviscar, Budgetcar, Avis Budget Group Inc.
By Dan Selcke, J.D.
The Canada Competition Bureau has filed an application with the Competition Tribunal, seeking an end to alleged false and misleading advertisements by Aviscar and Budgetcar, a total of $30 million in administrative monetary penalties, and refunds for consumers, the Bureau announced today. The filing also targets Avis Budget Group Inc., Aviscar’s and Budgetcar’s parent company.
According to the Bureau, Avis and Budget impose fees during the rental car process that increase the cost of any given rental by up to 35% over what was advertised. The companies characterize these fees as taxes and surcharges the government requires them to collect, but they actually they go toward the cost of doing business, the Bureau alleged.
"Consumers are entitled to clear and precise information when making their purchasing decisions and need to be confident that the information they receive regarding additional fees is truthful and accurate," said Commissioner of Competition.
Because Avis and Budget used electronic messages to disseminate their misleading statements, the Bureau made its filing pursuant to the new provisions of the Competition Act that came into force as part of Canada’s Anti-Spam Legislation in July 2014. This marks the first time the Bureau has made use of those provisions.
Companies: Aviscar, Budgetcar, Avis Budget Group Inc.
News: Advertising ConsumerProtection