Automobile Advertising and Shopping Practices: A Financial Risk to Consumers?

Author

Shahram (Shari) Prymak

Organization

Automobile Consumer Coalition (ACC)

Published

2020

Summary

The automobile shopping process has experienced a great deal of change over the last several years. Dealerships are making use of new forms of digital advertising and online shopping experiences designed to induce consumers into purchasing a vehicle. Consumers have access to more digital tools and resources, as well as greater transparency and more flexibility when shopping for a vehicle.

The Automobile Consumer Coalition (Car Help Canada) research report finds that some car dealerships are using deceptive and non-compliant advertising practices which may be harmful and costly to consumers. The report explores the use of high-risk advertising and shopping practices by the automotive industry, including: deceptive advertising that fails to disclose the true costs and fees associated with purchasing a vehicle; non-compliance with all-in price advertising legislation; and, the use of online vehicle purchasing.
The research includes two separate Canada-wide surveys. The first survey targeted consumers to learn about their vehicle-buying experiences and encounters with automotive advertising, while the second queried dealerships to learn about their thoughts on advertising trends and legislation.

The report makes several recommendations for actions which can be taken, including: expanding all-in price advertising legislation to all provinces; expanding the use of consumer education campaigns so that more consumers understand their rights when shopping for a vehicle; and, requiring automobile manufacturers to comply with all-in price advertising.

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OCA Funded Research
This research received funding support through the Office of Consumer Affairs' Contributions Program.

Contact information

Source: Consumer Policy Research Database