Canadian Tire Faces $1.3M Fine for Misleading Advertising
Canadian Tire has been mandated to pay a fine of nearly $1.3 million after pleading guilty to numerous counts of false advertising. This decision follows the company’s initial plea of not guilty to violations of Quebec’s Consumer Protection Act.
Details of the Case
The guilty plea encompasses 74 counts, with fines ranging from $15,625 to $18,150 for each violation. The agreement was approved by Quebec court Judge Simon Lavoie at a Montreal courthouse.
Investigation Background
The case originated from a six-month investigation conducted by the province’s consumer protection office in 2021. It revealed that Canadian Tire misled consumers into believing that certain sale items were deeply discounted. This was achieved by inflating the regular prices in advertising materials.
Sales data analysis indicated that the products involved were seldom sold or advertised at the inflated prices. The consumer protection office evaluated seven specific products and confirmed their pricing from April to October 2021. This review was carried out through Canadian Tire flyers, the company’s website, and in three of its stores located in the Montreal region.
Products Involved
- Henckels knife sets
- Cuisinart knife sets
- Lagostina cookware
- Heritage cookware
- Dewalt cordless drill
Canadian Tire acknowledged liability for these five products during the proceedings.
Company Response
In response to the situation, a spokesperson for Canadian Tire stated, “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.” The company is required to settle the fines within the next year.
