Budget and Avis car rental companies have settled a misleading advertising case with Canada’s Competition Bureau.Louie Palu/The Globe and Mail
The Competition Bureau has settled a misleading advertising case against the Avis and Budget rental car companies – but came away with less than originally sought when its allegations were announced early last year.
The companies have agreed to pay $3.25-million in administrative penalties and costs, rather than the $10-million that the bureau originally sought, and to establish internal education and monitoring programs that run for 10 years.
Avis and Budget have agreed to implement a program that ensures senior managers and other personnel comply with provisions of the Competition Act that prevent deceptive marketing claims.
They have also agreed to notify the bureau if they become aware of any future breach of the act for the next 10 years.
But the settlement doesn't contain any admission of wrong-doing by the companies nor compensation to former and current customers – two of the bureau's early goals.
Competition Commissioner John Pecman said in a statement that he's confident that the case "will serve as an important deterrent to false or misleading advertising in the Canadian marketplace."
The Ottawa-based federal agency had accused the two related companies in a March 2015 filing of misleading consumers by advertising prices that excluded unavoidable expenses, such as taxes, surcharges and fees.
The companies denied the allegations and said their advertising was "intended to at all times demonstrate transparency and honesty," including with rates and services.
The bureau says the companies will pay a $3-million administrative penalty and $250,000 for costs incurred by the Competition Commissioner during the investigation.