Canada’s Competition Bureau has reached a consent agreement with Enterprise Rent-A-Car Canada Company (Enterprise) to correct what the Bureau concluded were misleading advertisements. Enterprise will pay a penalty of $1 million and review its practices to ensure that its advertisements comply with the law.
The Bureau concluded that services were not available to Canadian consumers at the prices advertised by Enterprise because additional mandatory fees were being charged by the company, the Bureau said in a press statement. The Bureau also concluded that this practice resulted in consumers paying higher prices than advertised.
“Enterprise Holdings is committed to transparency and to upholding high industry standards regarding pricing, fees, and discounts,” Steve Tudela, corporate vice president of Enterprise Holdings Canada said in a statement to Auto Rental News. “We are cooperating proactively and voluntarily with CCB to enhance the clarity of our advertising and that of our industry overall.”
According to the Bureau's investigation, Enterprise's additional mandatory fees increased the advertised prices by as much as 6% to 48%. The prices were advertised across various media, including online, on mobile applications, and in emails. The statement did not define the nature of the fees.
This is the third time that the Bureau has taken action to resolve similar concerns in the car rental industry. So far, the Bureau's work has led to a total of $5.25 million in administrative monetary penalties against the three largest car rental companies in Canada, the Bureau reported.