Canadian Tire ordered to pay nearly $1.3 million for false advertising
Canadian Tire has been ordered to pay a substantial amount of $1.3 million after pleading guilty to 74 counts of violating Quebec's Consumer Protection Act. This settlement comes after an initial not-guilty plea, with the retail giant agreeing to the terms set by the Crown prosecutor, Jérôme Dussault.
The case, which stems from a six-month investigation by Quebec's consumer protection office in 2021, revealed that Canadian Tire had been misleading consumers. The office concluded that the company had artificially inflated the regular prices of sale items, attempting to convince shoppers that they were getting deep discounts. This was done by including exaggerated regular prices in their advertising material, which was rarely reflected in actual sales.
The investigation targeted seven products, including Henckels and Cuisinart knife sets, Lagostina and Heritage cookware, and a Dewalt cordless drill. Canadian Tire admitted liability for five of these products, acknowledging that they had misled consumers.
In a statement, a Canadian Tire spokesperson addressed the issue, stating, '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 fines, which total $1.3 million, must be paid within the next 12 months. This settlement highlights the importance of consumer protection laws and the consequences for businesses that engage in false advertising practices.
