OTTAWA—The Competition Bureau has settled a misleading advertising case against the Avis and Budget rental car companies.
The Ottawa-based federal agency had accused the two related companies last year of misleading consumers because their advertised prices excluded taxes, surchages and fees that couldn’t be avoided.
They 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 Avis and Budget have now agreed to implement a program that ensures senior managers and their marketing 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.
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.