Think you paid fees over the advertised price for your car? - Action News
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Manitoba

Think you paid fees over the advertised price for your car?

You've bought a car at a dealership and you think you have been charged fees on top of the advertised price for the vehicle. You'd like to get that money back, but the problem is you don't have a copy of the original ad showing the price that brought you into the dealership. What do you do now?

Dont worry if you dont have the ad, says Consumer Protection Office

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Car advertisements in Manitoba must include all fees, except PST and GST. (Getty)

You've bought a car at a dealership and you think you have been charged fees on top of the advertised price for the vehicle. You'd like to get that money back, but the problem isyou don't have a copy of the original ad showing the price that brought you into the dealership.What do you do now?

In Saskatchewan, consumer protection legislation forces car dealers to keep copies of their ads for five years. In Manitoba, there's no such requirement in the Consumer Protection Act, though there is a law that says the advertised price of a vehicle is the price the consumer should pay.

Even if you don't have the ad,that doesn't mean thecase can't be investigated.Manitoba's Consumer Protection Office (CPO) says dealerships still have to co-operate with provincial investigations and are expected to produce supporting material.

"If the consumer didn't have a copy of the ad, CPO would ask the business to produce a copy of the ad," a CPO spokesperson said in a statement.

"The business can't get out of [the] responsibility to co-operate with an investigation.If the ad was on their website, CPO would expect they would have a backup of their system and could produce it by tracking the stock or VIN number."

New rule

Manitoba Member of the Legislative Assemblyand consumer protection critic Andrew Swan said Manitoba should consider adopting Saskatchewan's rule requiring dealerships to keep copies of the ads for five years.

MLA Andrew Swan is the NDP consumer protection critic in Manitoba. (CBC )

"I understand Saskatchewan has passed some legislation that probably does give people more protection than in Manitoba. I think it is something we should take very seriously," saidSwan.

On Friday, The CBC I-Team reported on one Winnipeg woman's success recouping the money she paid on top of the advertised price.

An I-Team investigation recently revealed extra fees are routinely being added to advertised prices despite legislation introduced in June 2015 that is supposed to ensure, as former premier Greg Selinger put it, the "price you see is the price you pay."

Jill Bristow is one of six people who told CBC News they've received a refund since the original I-Team investigation.

Bristow sent her dealer the ad for her recently purchased Hyundai along with her bill of sale, which shows she was charged fees above the advertised price.Murray Hyundai quickly issued her a refund, no questions asked.

"I was very fortunate that my deal was very fresh, and it was dealt with very well," said Bristow. Her advice to fellow consumers is: "keep your ad."

If a vehicle is sold for less than the advertised price, as is sometimes the case, then the regulation does not apply- Steve Chipman, president of Birchwood Automotive Group

Murray Hyundai told CBC News it has provided reimbursements to three customers who complained about the added fees.

Three more people who contacted the I-Team received refunds from other dealers in Winnipeg. Refunds reported to the I-Team range from $798 to $1,124.

Saskatchewan's Consumer Protection Division uses advertisements to investigate complaints and conduct inspections when they go to dealerships. Inspectors match up bills of sale with the advertised price to see if sales are compliant.

Manitoba's CPO would not specify if it conducts these sorts of inspections.

"Staff review ads, track information and depending upon the situation, they will visit dealerships, look through paperwork, correspond with dealerships, speak with dealerships on the phone or a combination of all three,"the CPO spokesperson said.

What is an ad?

The Manitoba Motor Dealers Association redistributed a Consumer Protection Office (CPO)document a week and a half ago to remind members to adhere to the new legislation.

The CPO gave the following examples of advertisements:

  • Newspaper, magazine, other publications
  • Direct mail, flyers
  • Website ads including dealer website, Kijiji and Autotrader
  • Social media
  • Radio/TV
  • Billboards
  • Signs (including those displayed in or on vehicle)

Negotiating lower price

But what if you add extras to the advertised price of a car or negotiate for a lowerprice?

The CPO says once car buyers start negotiating, things change.

"Once the consumer agrees to alter the vehicle or the terms laid out in the ad, the ad is no longer valid and the dealership is not bound to the price spelled out in the ad,"the CPO spokesperson said.

"Consumers always have the option to try to get a better deal for themselves, but the legislation is designed to ensure that a consumer can come into a dealership and buy a specific vehicle as-advertised, for the price it was advertised for."

But specific or targeted bonuses like loyalty incentives, conquest incentives (where automakers lure people away from another brand), Visa and Costco discounts offered bymanufacturers could be deducted from the advertised price afterwards, according to a CPO document that provided answers to dealers' questions about the new legislation.

Birchwood Automotive Group president Steve Chipman, whochairedthe Canadian Automobile Dealers Association when the new rules were announced in May of 2015,summed up the rules in anemail.

"If a vehicle is sold for less than the advertised price, as is sometimes the case, then the regulation does not apply," said Chipman.

On mobile? Read Manitoba's advertising legislation here