Ruling from the Competition Bureau against the Budget / Avis Group
ACTA shares a recent ruling from the Competition Bureau against the Budget / Avis Group and the $30M penalty they have levied against them. ACTA believes this is a milestone judgment and is intended to send a clear signal to all companies to clean up their pricing structure and display. Hopefully this sparks some action in our industry…
STORY:
Among the largest rental car companies carrying on business in Canada – are engaging in deceptive marketing practices. They have made, and are continuing to make, representations to the public that are false or misleading in a material respect about the price consumers must pay to rent their passenger vehicles and associated products in Canada. They do so at the expense of Canadian consumers to promote their passenger vehicles rentals, their associated products and their business interests more generally.
Promoting their products to the public at prices or discounts that are not in fact attainable. The Respondents’ representations create the general impression that consumers can rent their cars and associated products for less than what the Respondents actually charge. The Respondents’ representations are false or misleading in a material respect because the Respondents require consumers to pay additional Non-Optional Fees (defined in filing with Competition Bureau). The Respondents further represent these Non-Optional Fees (when they ultimately do reveal them) as taxes, surcharges and/or fees that rental car companies are required to collect from consumers, notwithstanding that it is the Respondents themselves who choose to impose these Non-Optional Fees on consumers to recoup part of their own cost of doing business. FULL DETAILS OF THE FILING CAN BE FOUND HERE