Discount car rental penalised for advertising unattainable prices
“A few years ago, car rental companies routinely advertised unattainable prices. The Bureau intervened against Avis and Budget in 2015 and continued pressing forward, demanding change across the industry. As a result, the four major players in Canada’s car rental market have now committed to correcting their marketing practices.”
Interim Commissioner of Competition
Drip pricing occurs when companies offer low prices up-front, but additional mandatory fees or charges are added later in the purchasing process and the real price of the product or service to the consumer ends up being much higher.
Research tells us that drip pricing affects consumers’ purchasing decisions. People are drawn to attractive prices and are then less willing to continue shopping around, even when additional mandatory fees are dripped throughout the purchasing process. As a result, consumers end up paying more.
The concerning representations were made online, on banners displayed on trucks and vans, as well as in emails and in stores since at least 2009.
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