Canadian Tire Faces $1.3 Million Fine for Fake Discounts
Canadian Tire is facing significant legal repercussions, amounting to a $1.3 million fine due to misleading discount practices. This enforcement action, initiated in April 2023, followed the issuance of 74 violation notices related to deceptive pricing across several product categories.
Details of the Violation
The company was penalized for false claims regarding the regular prices of seven products, including Henckels and Cuisinart knife sets, Lagostina and Heritage cookware, and a Dewalt cordless drill. Following extensive negotiations, Canadian Tire pled guilty to five of these charges.
Legal Framework
The violations pertain to Articles 225 and 227 of the Consumer Protection Act (LPC), which prohibit misleading price representations. Key points include:
- False claims regarding price reductions.
- Inaccurate representations of a product’s regular price.
- Misleading guarantees and warranties.
Evidence of Misleading Practices
Investigations revealed that the targeted products were rarely sold at their claimed regular prices during the promotional period from April to October 2021. According to the Office de la protection du consommateur (OPC), a mere fraction of sales reflected these claims.
Consumer Complaints and Store Surveillance
The OKC initiated prosecutions after confirming several instances of misleading practices across various Montreal locations. Specific stores were monitored, but the OPC did not disclose their identities. Notably, some Quebec stores received warnings for deceptive practices from February 2024 to December 2025.
Previous Offenses and Public Response
This is not the first time Canadian Tire has faced scrutiny for pricing irregularities. Previous investigations, including one by CBC’s Marketplace, highlighted inconsistencies in pricing on popular sale days. These findings have led to growing consumer distrust.
Comparative Fines by Other Companies
Historically, other retailers have also faced fines for similar offenses:
| Company | Year | Fine Amount | Reasons |
|---|---|---|---|
| Club piscine Plus | 2016 | $122,000 | False sale claims on spas |
| Magasins Trévi Inc. | 2015 | $82,500 | Similar offenses related to misleading discounts |
| Centre Hi-Fi | 2013 | $17,000 | Deceptive pricing on televisions |
| François Côté Collection | 2012 | $45,000 | False discounts on clothing |
Current Standing of Canadian Tire
Despite these challenges, Canadian Tire remains a popular retailer in Quebec. A recent survey by Léger ranked the chain seventh among major retailers. Moving forward, the company must address these serious allegations of false discounting practices to restore consumer trust.
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