Competition Bureau accuses car rental firms Avis and Budget of false advertising

OTTAWA – The Competition Bureau has accused rental car companies Avis and Budget as well as their parent company of false or misleading advertising.

The federal agency has filed an application with the Competition Tribunal seeking $30 million in administrative penalties and refunds for consumers from Aviscar, Budgetcar and Avis Budget Group Inc.

The bureau alleges Avis and Budget advertise prices that are not attainable due to additional fees imposed during the rental.

It also says the fees 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.”

The company denied the allegations in an email.

“Avis Budget Group has always adhered to core values of commitment, responsibility and integrity, and our marketing and advertising efforts are therefore intended to at all times demonstrate transparency and honesty, including the manner in which we present rates and services,” Avis Budget Group said.

“We look forward to the opportunity to set forth these facts to the authorities at the appropriate time.”