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ARTICLE · 16 MARCH 2015

Competition Bureau Goes After Avis And Budget For Misleading Advertising

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The Competition Bureau announced yesterday that it has initiated proceedings against Aviscar, Budget and their parent company, Avis Budget Group Inc.

CanadaAntitrust/Competition Law
Imran Ahmad
Imran Ahmad
Christopher Hersh
Christopher Hersh
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The Competition Bureau (the "Bureau") announced yesterday that it has initiated proceedings against Aviscar, Budget and their parent company, Avis Budget Group Inc. (collectively, the "Companies"). The Bureau alleges that the Companies engaged in false or misleading advertising in that they advertised misleading prices to consumers. The Bureau's application seeks, among other remedies, a total of $30 million in administrative monetary penalties ("AMPs") and refunds to affected customers.

Overview

In its application to the Competition Tribunal (the "Tribunal"), the Bureau alleges that the Companies made false or misleading representations to the public regarding the prices consumers must pay to rent vehicles and associated products in Canada. Specifically, the Bureau alleges that the Companies required consumers to pay additional "non-optional fees," which they represented as being taxes, surcharges and/or fees mandated by third parties despite the fact that the

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