Enterprise Rent A Car Canada to pay $1M penalty for misleading advertisements

Enterprise Rent A Car Canada to pay $1M penalty for misleading advertisements
Steve Salemi, of Enterprise Rent-A-Car, demonstrates how customers unlock a car in the new "WeCar" program on the campus of Washington University Tuesday, Jan. 15, 2008 in St. Louis. Enterprise Rent-A-Car is launching a new program this week that lets Washington University students rent cars on an hourly basis. (AP Photo/Tom Gannam)

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 six 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 practices concerns in the car rental industry.

In June 2016, Avis and Budget paid a penalty of $3 million dollars and in April 2017, Hertz and Dollar Thrifty paid a penalty of $1.25 million.

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.