Canadian Tire ordered to pay nearly $1.3 million for false advertising
Canadian Tire has been ordered to pay just under $1.3 million after pleading guilty to 74 counts of violating Quebec's Consumer Protection Act related to false advertising. The retail giant agreed to the settlement after initially pleading not guilty, according to Crown prosecutor Jérôme Dussault.
At the Montreal courthouse, Quebec Court Judge Simon Lavoie approved the agreement, which includes fines and costs ranging from $15,625 to $18,150 per count. The case stems from a six-month investigation by the province's consumer protection office in 2021, which concluded that Canadian Tire had attempted to convince consumers that sale items were on deep discount by including an artificially inflated regular price on its advertising material.
Analysis of sales data showed that the products in question were rarely sold or advertised at the so-called regular price. The consumer protection office targeted seven products and verified their prices between April and October 2021 in Canadian Tire flyers, on the company's website, and in three stores in the Montreal area. Under the agreement, Canadian Tire admitted liability for five of the products under investigation, including Henckels and Cuisinart knife sets, Lagostina and Heritage cookware, and a Dewalt cordless drill.
In an email statement, a Canadian Tire spokesperson wrote, 'The OPC charges relate to five products over a six-month period five years ago. Importantly, no customers were overcharged and the matter is now concluded.' Canadian Tire must pay the fines within the next 12 months.
This case highlights the importance of consumer protection and the consequences of false advertising. It serves as a reminder for businesses to ensure their advertising practices are transparent and accurate, and for consumers to be vigilant in their purchases.
