Canadian Tire ordered to pay nearly $1.3 million for false advertising
MONTREAL — Canadian Tire has been ordered to pay a substantial sum of nearly $1.3 million after pleading guilty to 74 counts of violating Quebec's Consumer Protection Act. This settlement came after the company initially pleaded not guilty to the charges.
The case was a result of a six-month investigation by Quebec's consumer protection office in 2021, which uncovered a deceptive practice by Canadian Tire. The office found that the company had been misleading consumers by including artificially inflated regular prices on its advertising material, suggesting that sale items were on deep discount.
During the investigation, the office analyzed sales data and verified the prices of seven targeted products between April and October 2021. The analysis revealed that the products were rarely sold or advertised at the inflated regular prices, indicating a clear violation of consumer protection laws.
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. The company must now pay fines within the next 12 months, with each count ranging from $15,625 to $18,150.
This incident highlights the importance of consumer protection laws and the need for businesses to maintain transparency in their advertising practices. It serves as a reminder that consumers have rights, and companies must uphold these rights to maintain trust and integrity in the marketplace.
