Canadian Tire Fined $1.3 Million for Misleading Advertising

Canadian Tire has been fined nearly $1.3 million for misleading advertising practices. The company faced 74 counts of breaching Quebec’s Consumer Protection Act. This legal decision follows the retail giant’s plea agreement after initially declaring not guilty.

Details of the Case

The settlement was approved by Judge Simon Lavoie in a Montreal courthouse. Under this agreement, Canadian Tire agreed to pay fines ranging from $15,625 to $18,150 for each violation.

Investigation Background

• The investigation was conducted over six months in 2021 by Quebec’s consumer protection office.
• Authorities discovered that Canadian Tire had misled consumers about discounts on sale items.
• The investigation focused on seven specific products, verifying their prices from April to October 2021.

Misleading Advertising Practices

Canadian Tire’s advertisements suggested that items were sold at steep discounts by inflating the regular prices. However, an analysis revealed that the products involved were rarely sold at these inflated prices.

Products Involved

Among the five products for which Canadian Tire admitted liability are:

• Henckels knife sets
• Cuisinart knife sets
• Lagostina cookware
• Heritage cookware
• Dewalt cordless drill

Canadian Tire is required to complete the payment of these fines within the next 12 months. Legal actions like this highlight the importance of accurate advertising practices in retail.