Online Automobile Shopping and Consumer Protection: A Safe Option for Consumers?

Author

Shahram (Shari) Prymak

Organization

Automobile Consumer Coalition (ACC)

Published

2023

Summary

The report looks at current online practices being used by the automobile industry as well as the extent of these practices and the risks they pose to consumers. It also examines the level of regulation involved in buying cars online. According to the report, more and more people are willing to buy a vehicle online. Dealers are beginning to offer buyers comprehensive online vehicle purchasing options, including e signing of purchase contracts. Unethical sales practices that can financially harm consumers continue to be problematic for online vehicle sales. The ACC recommends that regulators do more to educate consumers. It also recommends introducing a cancellation and exchange policy for online purchases and increasing penalties for non-compliant dealers. Lead generators and automakers should be required to comply with all-in price advertising and mandatory disclosure requirements in all provinces. Regulatory authorities should also consider standardizing enforcement processes, penalties and costs across all provinces.

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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