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ARTICLE · 01 NOVEMBER 2018

Fixing The Leak: Discount Fined $700,000 For Drip Pricing

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Discount Car & Truck Rentals Ltd. recently became the fourth car rental company to reach an agreement with the Competition Bureau to settle allegations that they were advertising unattainable prices, a practice known as drip pricing.

CanadaAntitrust/Competition Law
Tegan O'Brien
Tegan O'Brien
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Discount Car & Truck Rentals Ltd. recently became the fourth car rental company to reach an agreement with the Competition Bureau to settle allegations that they were advertising unattainable prices, a practice known as drip pricing. Discount agreed to update its policies to address Bureau concerns and pay $700,000 in administrative monetary penalties. The Bureau's position is clear: advertised prices must include all mandatory fees. Businesses that do not follow this rule can expect the Bureau to investigate them and seek fines that can reach $10 million.

Drip pricing is the practice of advertising or offering low prices at first instance, but slowly increasing the overall price through additional non-optional charges. The charges keep coming, like drips out of a leaky faucet. Drip pricing is not a new concept; but the continuing shift towards e-commerce means that consumers are more exposed to it, and businesses that advertise this way face increased regulatory

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