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Avis Budget Group Inc.'s misleading advertising proceeding

May 2017 Client: Avis Budget Group Inc.

Counsel to Avis Budget Group Inc. and its affiliates in connection with proceedings commenced by the Commissioner of Competition, alleging violations of the misleading advertising provisions of the Competition Act.

The Commissioner sought administrative monetary penalties totaling $30 million against the parties, plus restitution of approximately C$35 million. This is the largest total amount ever sought by the Commissioner in a single proceeding before the Competition Tribunal.

We advised the companies throughout the investigation, and we negotiated a consent agreement with the Commissioner to resolve the matter without an admission of liability. Pursuant to the agreement, the Canadian entities agreed to change the manner in which they presented their prices and describe the non-optional fees. They further agreed to pay $3 million in administrative monetary penalties, and $250,000 towards the Bureau’s costs.