Canadian Tire Must Pay $1.3 Million for Misleading Advertisements
Canadian Tire has been ordered to pay nearly $1.3 million after pleading guilty to multiple counts of misleading advertising. The judgment was made after the company agreed to a settlement related to violations of Quebec’s Consumer Protection Act.
Details of the Case
The settlement follows a six-month investigation conducted in 2021 by Quebec’s consumer protection office. Prosecutor Jérôme Dussault indicated that Canadian Tire initially pleaded not guilty to the charges.
Court Proceedings
The agreement was approved by Judge Simon Lavoie at the Montreal courthouse. Canadian Tire is facing fines that range from $15,625 to $18,150 for each of the 74 counts.
Misleading Advertising Practices
The investigation revealed that Canadian Tire misled consumers by presenting artificially inflated “regular prices” in their advertisements. This practice made sale items appear significantly discounted, although many products were seldom sold at the claimed regular prices.
Product Analysis
The consumer protection office investigated seven specific products, validating prices across Canadian Tire flyers, the company’s website, and in three Montreal-area stores from April to October 2021. The products involved included:
- Henckels knife sets
- Cuisinart knife sets
- Lagostina cookware
- Heritage cookware
- Dewalt cordless drill
Canadian Tire admitted liability for five of these products, acknowledging the misleading nature of their pricing.
Company Response
In an email statement, a spokesperson for Canadian Tire noted that the charges pertained to a limited number of products over a six-month period from five years ago. They emphasized that no customers were overcharged in this matter.
Financial Settlement
Canadian Tire is required to pay the total fines within the next 12 months. This case highlights the importance of transparency in advertising practices and consumer trust in retail environments.
