Federal regulators are accusing rental car companies Avis and Budget of false and misleading advertising.
The Competition Bureau said Wednesday it has filed an application seeking $30 million in administrative penalties and refunds for customers of Aviscar, Budgetcar and Avis Budget Group Inc.
The bureau “has taken action against what it considers to be deceptive marketing practices by two of Canada’s largest rental car companies,” a statement said.
The bureau alleges Avis and Budget advertise prices that are not attainable due to additional fees charged when a customer rents a vehicle. It also says the charges are characterized as taxes, surcharges and fees that governments and agencies require Avis and Budget to collect.
“In fact, Avis and Budget impose these charges to recoup part of their own cost of doing business,” the bureau said. “As a result, consumers end up paying higher prices or receiving lower discounts than advertised.”
Comment from Avis or Budget wasn’t immediately available.
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