Oil change scams: Hidden camera investigation on what really happens to your car (CBC Marketplace)

CBC News

10 Sept 201421:08

EducationalLearning

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TLDRAn investigative report exposes fraudulent practices at Economy Lube, a chain of oil change garages. Former employees reveal a culture of deception, where unnecessary services are sold to unsuspecting customers. The undercover operation captures instances of services paid for but not performed, and even the use of incorrect fluids, potentially damaging vehicles. The company's founder, Steve Moxey, denies wrongdoing but is confronted with evidence of the scams. The report concludes with consumer advice on how to avoid being upsold and ensuring trustworthy vehicle maintenance.

Takeaways

🚗 The 'Economy Lube' franchise is accused of fraudulent practices, including upselling unnecessary services to customers.
🔍 An undercover investigation by 'Marketplace' revealed that the advertised $20 oil change often led to much higher bills due to additional, unneeded services being pushed onto customers.
🗣️ Insiders, who are former employees of Economy Lube, shared that the company's culture encouraged dishonest sales tactics to increase revenue, even if it meant lying about the car's condition.
🛠️ Expert mechanic Mark Sach-Anderson confirmed that the cars tested did not require the services they were charged for, such as brake and power steering flushes.
💸 Technicians at Economy Lube were reportedly on a commission system, which incentivized them to upsell services, leading to a culture of deceit for financial gain.
📹 Hidden camera footage captured by 'Marketplace' showed no evidence of the claimed services being performed, suggesting that customers were charged for work that was not done.
👮‍♂️ Former fraud investigator Mark Simchison stated that charging for services not performed is considered fraud, which is 'theft with a smile'.
🛑 When confronted, Economy Lube's owner Steve Moxey denied any wrongdoing but did not provide a satisfactory explanation for the evidence presented.
📋 'Marketplace' suggests consumers familiarize themselves with their car's manufacturer-recommended service schedule to avoid being upsold on unnecessary services.
🔧 For major or unexpected car maintenance, it's recommended to use a trusted mechanic rather than quick oil change shops that may have a vested interest in upselling.
🚨 Consumers should be vigilant and prepared for the potential of an upsell, ensuring they are not caught off guard by dishonest business practices.

Q & A

What is the main issue raised by the 'Marketplace' investigation on Economy Lube?
-The main issue is that Economy Lube is accused of fraudulent practices, including upselling unnecessary services and charging customers for services that were not actually performed.
How does Economy Lube allegedly deceive its customers according to the former employees?
-Former employees claim that Economy Lube trains its technicians to upsell services and to lie about the condition of the vehicles, such as falsely claiming that fluids are burnt or need replacing, to generate higher bills.
What is the significance of the hidden camera footage in the investigation?
-The hidden camera footage serves as evidence of the fraudulent practices, showing that technicians were charging for services such as brake and power steering flushes that were not actually performed.
What is the role of Mark Sach-Anderson in the 'Marketplace' investigation?
-Mark Sach-Anderson is an expert mechanic who assists in the investigation by checking the vehicles before they go to Economy Lube to ensure they only need an oil change, and later confirms that the additional services claimed by Economy Lube were unnecessary and not performed.
What was the outcome of the first test conducted by 'Marketplace' at Economy Lube?
-The first test resulted in the tester being charged over $200 for an oil change and additional services that were not needed, and which were not actually performed according to the expert mechanic's assessment and the hidden camera footage.
What is the incentive for Economy Lube technicians to upsell services to customers?
-Technicians are on a commission system, meaning they earn more money for each additional service they sell to customers, which encourages them to lie and upsell as much as possible.
How does the owner of Economy Lube, Steve Moxey, respond to the allegations of fraudulent practices?
-Steve Moxey denies any wrongdoing, suggesting that while he is in the stores every day, he could be wrong and that it's possible for fraudulent actions to occur among the hundred employees without his knowledge.
What is the advice given by 'Marketplace' for consumers seeking an oil change?
-Consumers are advised to familiarize themselves with the service schedule recommended by their car's manufacturer, stick with a mechanic they trust for bigger or unexpected services, and be prepared for and knowledgeable about potential upsells.
What is the final verdict of the former fraud investigator, Mark Simchison, on Economy Lube's practices?
-Mark Simchison states that charging and accepting money for services that were not performed is fraudulent, which aligns with the findings of the 'Marketplace' investigation.
What was the highest amount charged to a customer in the investigation, and what services were included in the bill?
-The highest amount charged was $251, which included an unnecessary full system coolant flush and other services that were either not needed or not performed correctly.

Outlines

00:00

🔍 Undercover Investigation at Economy Lube

This paragraph introduces an investigative piece by Tom Harrington on 'Marketplace' focusing on the deceptive practices at Economy Lube, a fast lube franchise. Tom and his team suspect that customers are being upsold on unnecessary services and even charged for work that isn't performed. Insiders from Economy Lube, who wish to remain anonymous, share their experiences of working for a company they describe as 'shady, crooked, deceitful.' The segment sets the stage for an undercover operation to test these allegations at an Economy Lube location in Guelph, Ontario.

05:09

🛠️ Unnecessary Services and the Reality of Economy Lube's Operations

The second paragraph delves into the specifics of the undercover test conducted at Economy Lube. Expert mechanic Mark Sach-Anderson ensures the test vehicles require only an oil change to establish a baseline. The team sets up hidden cameras to capture the interactions and work done on the cars. The first tester, Anu, is upsold on additional, unnecessary services like a brake flush and power steering flush, despite the car not needing them. The tactics used by Economy Lube's technicians are revealed through the experiences of former employees, who were trained to upsell services regardless of the customer's actual needs.

10:16

💸 The High Cost of Deception at Economy Lube

This paragraph details the financial impact of the deceptive practices at Economy Lube. Testers Anu and Ryan are charged exorbitant amounts for services they didn't need, such as brake flushes and transmission services, which were not only unnecessary but also not performed. The hidden camera footage confirms that the promised work was not carried out, despite the customers being billed for it. The technicians' commission-based incentives to upsell are highlighted, revealing a systemic issue that prioritizes profit over customer needs and vehicle integrity.

15:20

📈 The Consequences of Economy Lube's Unscrupulous Practices

The fourth paragraph discusses the aftermath of the tests and the implications of the findings. The technicians' false claims about the condition of the vehicles' fluids are exposed, and the expert mechanic, Mark, confirms that the work was not done correctly, if at all. One tester, Steve, is also upsold on a full system coolant flush, which not only wasn't necessary but was also filled with the wrong coolant, potentially causing damage to the vehicle. The paragraph builds tension as Tom and his team prepare to confront the owner of Economy Lube about these practices.

20:20

🚫 Confrontation and the Impact on the Industry's Reputation

In the final paragraph, Tom and his team attempt to get answers from Steve Moxey, the president and founder of Economy Lube, but are initially denied an on-camera interview. Moxey later denies any wrongdoing over the phone, despite the evidence of fraudulent practices. One of the Economy Lube employees caught on camera admits to the deceptive tactics, explaining the pressure to upsell due to the company's focus on profit. The paragraph concludes with advice for consumers on how to avoid falling victim to such practices and the damaging impact of Economy Lube's actions on the reputation of the automotive service industry.

Mindmap

Keywords

💡Fraud

Fraud refers to the intentional deception resulting in injury to another individual. In the context of the video, it is used to describe the deceptive practices at Economy Lube, where services are sold and paid for but not actually performed. The script mentions, 'I have told people all my life that fraud is theft with a smile,' highlighting the theme of the video that uncovers fraudulent activities at the oil change franchise.

💡Upselling

Upselling is a sales technique where a seller encourages a customer to purchase a higher-priced item or additional services. The video's theme revolves around this concept, as Economy Lube is accused of upselling unnecessary services to customers, such as a 'transmission service' or 'brake flush,' which are not needed and, in some cases, not even performed.

💡Insiders

Insiders are individuals who have inside knowledge or access to information about a particular situation or organization. In the script, former employees of Economy Lube, who are insiders, expose the company's fraudulent practices. They reveal the company's focus on upselling to increase revenue, even at the expense of customer trust and satisfaction.

💡Transmission Fluid

Transmission fluid is the lubricant that enables the smooth operation of a vehicle's transmission system. The script mentions the recommendation to change transmission fluid as part of the upsell tactics used at Economy Lube. However, the video's investigation reveals that this service, like others, is often unnecessary and sometimes not even performed despite being charged.

💡Power Steering Fluid

Power steering fluid is a hydraulic fluid that assists the steering system of a vehicle by reducing the effort needed to steer. The video script describes how Economy Lube technicians use the appearance and smell of power steering fluid as a deceptive tactic to upsell customers on a 'power steering flush,' which is another service that may not be needed and is sometimes not performed.

💡Brake Flush

A brake flush is a maintenance procedure that involves flushing out the brake fluid and replacing it with new fluid. The term is used in the script to illustrate one of the many unnecessary services that Economy Lube technicians push onto customers as part of their upselling strategy. The video investigation shows that these flushes were both unneeded and, in some cases, not actually carried out.

💡Commission

Commission refers to a payment made to an employee or agent as a percentage of the amount of business done. In the video, it is revealed that Economy Lube technicians are on a commission system, which incentivizes them to upsell services to customers. This creates a conflict of interest and contributes to the fraudulent practices at the company.

💡Expert Mechanic

An expert mechanic is a skilled professional who is knowledgeable and experienced in automobile repair and maintenance. In the video, an expert mechanic named Mark Sach-Anderson is introduced to provide a baseline for the test vehicles, ensuring they only require an oil change. He later confirms that the additional services sold by Economy Lube were unnecessary and, in some cases, not performed.

💡Hidden Camera

A hidden camera is a recording device that is concealed and not easily visible. The video script mentions the use of a hidden camera to capture the interactions and practices at Economy Lube. This footage provides evidence of the fraudulent upselling and the failure to perform paid services, which is central to the video's investigation.

💡Conestoga College

Conestoga College is an educational institution that offers training for various professions, including automotive mechanics. In the script, it is mentioned as the home base for the day, where the test vehicles are prepared and the findings are analyzed. The college's garage facilities are used to demonstrate the discrepancies between the services Economy Lube claims to perform and those that are actually needed.

💡Survival Guide

A survival guide typically provides tips and strategies for dealing with challenging situations. In the context of the video, the 'Marketplace survival guide' offers advice to consumers on how to navigate the process of getting an oil change without falling victim to fraudulent practices. The guide suggests familiarizing oneself with the manufacturer's recommended service schedule, sticking with a trusted mechanic for major or unexpected services, and being aware of upsell tactics.

Highlights

Economy Lube, a fast lube franchise, is accused of deceptive practices and upselling unnecessary services to customers.

Insiders reveal that Economy Lube employees are trained to upsell services and prioritize financial gains over the actual needs of the vehicles.

Former employees describe Economy Lube as 'shady, crooked, deceitful' and share their experiences of ripping off customers.

An undercover investigation is conducted by 'Marketplace' with a team of testers visiting Economy Lube to assess the claims.

Expert mechanic Mark Sach-Anderson confirms that the vehicles used in the test needed only oil changes and were in good condition prior to the test.

Testers are upsold on expensive and unnecessary packages, including brake flushes and power steering flushes, despite not requiring them.

Hidden cameras capture Economy Lube technicians falsely claiming that vehicle fluids are burnt and need replacement.

Technicians are found to be on commission, incentivizing them to sell as many unnecessary services as possible for higher earnings.

Evidence suggests that Economy Lube may not have performed the services they charged for, as indicated by the lack of physical changes to the vehicles.

The owner of Economy Lube, Steve Moxey, is confronted but denies any wrongdoing and avoids an on-camera interview.

A former fraud investigator weighs in, stating that charging for services not performed constitutes fraud.

Economy Lube employees admit to the deceptive practices when contacted after the investigation, acknowledging the company's focus on profit.

The investigation reveals a pattern of upselling and false claims about vehicle conditions to increase bills for Economy Lube.

One tester is charged over $200 for an oil change and unnecessary services, highlighting the extent of the upselling.

Another tester is upsold on a transmission service that was recently performed and not needed, adding to the evidence of deceit.

A final tester is charged an exorbitant $251 for a simple oil change and additional services that were neither needed nor performed.

Marketplace provides a survival guide with tips for consumers to avoid being upsold and ripped off at oil change shops.

Transcripts

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Exposé Fraud Upselling Oil Change Economy Lube Customer Alert Hidden Camera CBC Car Maintenance Investigative Journalism