Canada: $1.25 million settlement in car rental drip pricing case

Canada’s Competition Bureau announced this week that it has negotiated a $1.25 million ($920,000 USD) settlement with two major Canadian car rental companies (Hertz Canada Limited and Dollar Thrifty) in relation to alleged “drip pricing” advertising practices.

In particular, the Bureau had taken the position that the two car rental companies had engaged in civil misleading advertising by advertising upfront prices that were not in fact attainable based on mandatory additional fees of between 10% and 57% that were not disclosed upfront. The Bureau had also been challenging the advertising of additional fees described as mandatory taxes or government surcharges when, according the Bureau, the fees were merely additional internal company costs.

As part of this settlement, in addition to the negotiated civil administrative monetary penalty, the car rental companies agreed to also stop advertising fees that are not available and implement compliance programs.

Full Content: Canadian Advertising Law

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