An undercover investigation by CBC’s Marketplace has uncovered deceptive practices at some Ontario car dealerships. The Ontario Motor Vehicle Industry Council (OMVIC) mandates that advertised prices must include all expected fees, except for HST and licensing. However, the investigation found that certain dealerships in the Greater Toronto Area were adding costs to the advertised price when customers inquired in person.
Posing as customers, Marketplace journalists visited various dealerships to inquire about vehicles advertised online. They found that six out of 15 dealerships charged more than the advertised price, while four displayed photos of higher-priced vehicle versions than what they were selling. Additionally, six dealerships included extra features that were not requested by the undercover shoppers, though most agreed to remove them upon request.
According to George Iny, director of the Automobile Protection Association, deceptive practices in car advertisements have become more sophisticated, making it challenging for consumers to get transparent pricing information.
The surge in new car purchases post-COVID-19, coupled with ongoing vehicle and parts shortages, has heightened the importance of ensuring price transparency in the car buying process.
During their investigation, Marketplace encountered obstacles in obtaining the advertised prices at certain dealerships. At Honda Queensway, a sales representative offered a lower price for a Honda Civic model but stated that any price increase upon arrival of the vehicle would be the customer’s responsibility. Similarly, at 401 Dixie Hyundai, only specific customers were eligible for the advertised price, contrary to the ad’s information.
At Dixie Ford and Formula Ford, discrepancies were found in advertised down payments, with additional charges not clearly disclosed in the fine print. Dealerships explained that certain charges were part of the down payment, but transparency issues were raised regarding the lack of specific amounts in the advertisement.
In response to the deceptive practices observed, OMVIC CEO Maureen Harquail emphasized the importance of seeking clear and all-inclusive pricing information. She encouraged consumers to contact OMVIC if they encounter unclear advertising or pricing practices.
The investigation also revealed instances where vehicles pictured in ads were more expensive than those for sale, violating OMVIC rules that require accurate representation of the advertised vehicle’s features and pricing.
Furthermore, the addition of extra features to a vehicle’s price, termed “tied selling,” was observed at dealerships like Queensway Hyundai, where customers were told about mandatory add-ons that were not clearly presented as optional. Consumer advocates advise buyers to be aware of such practices and thoroughly review any additional features offered by dealerships.
Calls have been made for a cooling-off period for car buyers in Ontario, allowing them to cancel a purchase within a certain timeframe. While Ontario explored implementing a cooling-off period in the past, the idea was ultimately rejected. Premier Doug Ford urged consumers to be cautious and insisted on not paying more than the advertised price when purchasing a vehicle.