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OTTAWA—The Competition Bureau has reached a consent agreement with Enterprise Rent-A-Car Canada over misleading advertisements that will see the car rental company pay a $1-million penalty.
According to the bureau’s investigation, services were not available at prices advertised because Enterprise’s additional mandatory fees increased advertised prices by as much as 6 per cent to 48 per cent.
As part of the settlement, Enterprise — which also operates under the trade names National Car Rental and Alamo Rent-A-Car in Canada — will review its practices to ensure that its advertisements across various media comply with the law.
This is the third time that the bureau has taken action to resolve similar pricing-practice concerns in the car rental industry.
In both cases, the bureau further concluded that some of the fees were described in a way that implied they were mandatory taxes or surcharges imposed by various governments when, in fact, the companies chose to impose the additional mandatory fees to recover part of their own cost of doing business.