Advertisements from car dealerships often promise deals on specific new vehicle models, but a recent undercover investigation by CBC’s Marketplace uncovered a concerning trend in Ontario. Some dealerships in the province are adding extra costs to the advertised prices when customers visit in person.
The Ontario Motor Vehicle Industry Council (OMVIC), which regulates car sales in the province, stipulates that dealership ads must include all fees expected from consumers, except for HST and licensing fees. This requirement has been in place since 2010, ensuring transparency for buyers.
Posing as shoppers, Marketplace journalists visited various dealerships in the Greater Toronto Area, including well-known brands like Chevrolet, Ford, Honda, Hyundai, and Toyota. They found that out of 15 dealerships, six charged more than the advertised price, four displayed images of pricier vehicle versions in ads, and six included extra features that were not requested by the undercover shoppers.
George Iny, director of the Automobile Protection Association, noted that deceptive practices in car advertisements have evolved, making it challenging for consumers to get a straightforward deal. The surge in new car purchases post-COVID-19 has further amplified concerns about transparency in the industry.
Marketplace encountered obstacles in obtaining the advertised prices, with instances where dealerships offered lower prices than advertised but with potential hidden costs. Some dealerships restricted advertised prices to specific customer segments or failed to disclose additional charges adequately.
It was also found that some ads featured images of higher-priced vehicle versions than those being sold, leading to confusion among potential buyers. Dealerships like Dixie Ford and Brimell Toyota were highlighted for showcasing pricier vehicle variants in their ads without clear disclosures.
Adding extra features to vehicle prices, known as “tied selling,” is legal in Ontario if these add-ons are factored into the total advertised price. However, concerns were raised about dealerships not clearly presenting optional features to customers.
Consumer advocates, including Maureen Harquail from OMVIC, emphasized the importance of clarity in advertising and pricing to protect buyers. The call for a cooling-off period in car purchases, similar to other consumer transactions in Ontario and other provinces, remains a topic of discussion.
While efforts are being made to address discrepancies in car sales practices, the need for enhanced consumer protection measures and transparency in the automotive retail sector is evident.