A recent investigation by CBC’s Marketplace has uncovered deceptive practices at car dealerships in Ontario. The investigation found that some dealerships in the Greater Toronto Area were not honoring the advertised prices on their websites. Instead, they were adding extra costs when customers inquired about the vehicles in person.
Under Ontario law, dealership ads must include the total amount that consumers are expected to pay, excluding only HST and licensing fees. However, the investigation revealed that some dealerships were charging additional fees for add-ons like floor mats, rust protection, and warranties.
Marketplace journalists posed as customers and visited 15 dealerships, including well-known brands like Chevrolet, Ford, Honda, Hyundai, and Toyota. The investigation discovered that six of the dealerships charged more than the advertised price, while four displayed photos of more expensive versions of the vehicles in their ads. Additionally, six dealerships included extra features that customers did not request.
George Iny, the director of the Automobile Protection Association, expressed concern about the lack of transparency in car ads and the prevalence of deceptive practices in the industry. He highlighted the challenges consumers face in getting the full and accurate information they need when purchasing a vehicle.
The investigation comes at a time when the demand for new cars has risen due to the COVID-19 pandemic, leading to shortages of vehicles and parts. Consumers are urged to be vigilant and informed when dealing with car dealerships to avoid falling victim to misleading practices.
When approached by Marketplace, some dealerships provided explanations for the discrepancies in pricing and features. The Ontario Motor Vehicle Industry Council (OMVIC) emphasized the importance of clear and transparent advertising to protect consumers’ interests.
As the industry faces scrutiny over misleading practices, there are calls for stricter regulations and increased consumer protection measures. Advocates are pushing for a cooling-off period for car buyers in Ontario, similar to provisions in other provinces, to allow consumers the opportunity to cancel a purchase within a certain timeframe.
