Description:
On the advertiser’s website, a vehicle listing advertised a specific savings as a discount the dealer was offering with the purchase of the advertised vehicle. The advertisement displayed the total dollar value in discounts with a pull-down menu further explaining the breakdown with both the MSRP and the specific dealership savings/discount. The advertisement also included the VIN number of the vehicle.
Complaint:
The complainant alleged the website advertisement was deceptive and misleading because most of the advertised savings came from federal and provincial rebates, not as a discount offered by the dealer. The basis of the discount was not mentioned in the advertisement itself, but rather was broken down in the new motor vehicle purchase agreement provided by the advertiser to the complainant. Furthermore, the complainant questioned how such a specific discount could even be offered when one of the governmental programs tied to the discount is conditional on the purchaser’s income.
Response:
In its response to Council, the advertiser submitted that they were unable to verify the specific offer being referenced in the ad screenshot provided by the complainant because manufacturer and dealership incentives are typically updated on a monthly basis and this one did not include a date or timestamp.
Furthermore, the advertiser noted that the new motor vehicle purchase agreement that was provided by the complainant indicated a different VIN number than the one on the website advertisement, therefore, undermining the validity of the complainant’s allegations.
The advertiser further advised that, regardless of the timing, the price listed in the new motor vehicle purchase agreement included a total discount offer to the complainant that was “[$5.00] greater than” the amount advertised in the website ad, a practice which the advertiser asserted no customer would complain about.
The advertiser did not address the concern that the discount shown was in fact a government rebate.
Decision:
Council appreciated the advertiser’s response, and considered the complaint together with the advertiser’s submission.
In the view of Council, there is a difference between a federal/provincial rebate (where certain qualifying conditions are to be met) and a dealer discount offered by a dealership. To advertise a savings as a dealer discount when it is a governmental rebate is inaccurate, false and misleading, according to Council. A ‘dealer discount’ implies that you can only get “the deal” at this particular dealership whereas governmental rebate programs are available for specific vehicles regardless of the dealership.
Council unanimously determined that all pertinent details of the advertisement were not clearly and understandably stated, and that the advertisement contained an inaccurate, deceptive and/or otherwise misleading representation resulting in a contravention of Clause 1(a) and 1(c). Council also unanimously held that the advertisement contained a deceptive price discount that exaggerated its worth or value to consumers, in contravention of Clause 3(a).
Infraction:
Clause 1(a), Clause 1(c), Clause 3(a)
