Car dealerships in Ontario have come under scrutiny following a hidden camera investigation by CBC’s Marketplace, revealing that some dealerships are adding additional costs to the advertised prices when customers inquire about vehicles in person. The investigation found that several dealerships charged more than the advertised price, displayed images of more expensive versions of vehicles in their ads, and included extra features that were not requested by customers.
The Ontario Motor Vehicle Industry Council (OMVIC) mandates that advertised prices must encompass all expected fees except for HST and licensing, per provincial law since 2010. Marketplace journalists conducted undercover visits to dealerships across the Greater Toronto Area, discovering discrepancies between advertised prices and actual quotes provided by sales representatives.
The investigation involved 15 dealerships featuring popular brands like Chevrolet, Ford, Honda, Hyundai, and Toyota. Out of these, six dealerships charged more than the advertised price, four displayed images of pricier vehicle versions, and six included additional features not requested by shoppers. George Iny, director of the Automobile Protection Association, noted a rise in deceptive practices in the car-buying experience, emphasizing the need for transparent advertising.
Consumers faced challenges obtaining the advertised price at some dealerships. For instance, at Honda Queensway, a sales rep offered a lower price than advertised but implied potential price increases upon vehicle arrival. Similarly, at 401 Dixie Hyundai, eligibility restrictions were placed on the advertised price, contrary to the ad’s content.
Furthermore, some dealerships misrepresented the vehicles in ads by showcasing higher-priced versions or models with additional features not included in the base price. This practice, termed “tied selling,” is legal in Ontario if disclosed in the all-inclusive price. Dealerships like Queensway Hyundai added mandatory features, claiming it was required in Toronto, despite city officials refuting such claims.
OMVIC has been conducting mystery shopping to ensure compliance with advertising regulations, aiming to educate dealerships and enhance consumer awareness. Calls for a cooling-off period in car purchases have been proposed to empower buyers with cancellation options within a specified timeframe. Ontario previously explored a two-day cooling-off period but did not implement it, citing concerns about industry impacts.
Ontario Premier Doug Ford expressed willingness to address consumer concerns, advising caution and adherence to advertised prices. The ongoing scrutiny highlights the importance of transparency and fair practices in the automotive retail sector.