A recent investigation by CBC’s Marketplace uncovered deceptive practices at various Ontario car dealerships. The investigation revealed that some dealerships were inflating prices beyond the advertised amounts when customers visited in person. According to the Ontario Motor Vehicle Industry Council (OMVIC), dealership ads must display the total inclusive price since 2010, except for HST and licensing fees.
Undercover journalists from Marketplace posed as customers at dealerships in the Greater Toronto Area to examine advertised prices. They found that out of 15 dealerships, six charged more than the advertised price, while four displayed images of pricier models in their ads. Additionally, six dealerships added extra features without customer consent, although most were eventually removed upon request.
George Iny, from the Automobile Protection Association, noted the increasing complexity of deceptive practices in the car-buying process for consumers. The investigation coincided with a rise in new car purchases post-COVID-19, leading to ongoing vehicle and parts shortages affecting the industry.
During the visits, Marketplace encountered obstacles in obtaining the advertised prices. At various dealerships, discrepancies arose between advertised prices and actual costs, leading to confusion and potential overcharges. Dealerships like Honda Queensway and 401 Dixie Hyundai failed to honor the advertised prices, citing different eligibility criteria or undisclosed charges.
Furthermore, some dealerships showcased higher-priced vehicle versions in their ads compared to the models for sale, violating OMVIC regulations. Dealerships like 401 Dixie Hyundai, Queensway Hyundai, and Agincourt Hyundai featured images of pricier vehicle trims despite advertising base model prices. Such practices were criticized by industry experts, emphasizing the importance of accurate advertising.
In response to the findings, OMVIC and consumer advocates like Maureen Harquail highlighted the need for transparent pricing and consumer protection. While most dealerships comply with regulations, Marketplace‘s discoveries underscore concerns about misleading advertising and pricing tactics. Advocates advocate for a cooling-off period to allow buyers an opportunity to cancel purchases, similar to regulations in other Canadian provinces.
Despite previous discussions on implementing a cooling-off period in Ontario, the idea was abandoned due to industry concerns. Premier Doug Ford acknowledged the issue and advised consumers to be vigilant and not pay more than advertised prices. The ongoing scrutiny of dealership practices aims to promote fair and transparent transactions in the automotive retail sector.
