False Discounts Flood Canadian Tire

The Office de la protection du consommateur (OPC) in Quebec has achieved a historic settlement with Canadian Tire, resulting in the largest fine in its 53-year history. Canadian Tire will pay $1.287 million for misleading pricing practices. The company was found to have advertised significant discounts on items that never had inflated prices.

Details of the Settlement

The allegations stem from a circular released on April 22, 2021. This circular included dubious regular prices for various products. For instance, a cookware set advertised at $2,000 was purportedly sold at a reduced price of $500. However, investigators discovered that the set was never sold for over $1,000, diminishing the genuine discount’s appeal.

Investigation Findings

The OPC’s investigation uncovered inflated prices on at least five products listed in multiple advertisements. Canadian Tire faced a staggering 74 charges from the Directeur des poursuites criminelles et pénales (DPCP) in 2023 for these violations. The breakdown of charges included:

• 19 charges for Héritage Élite cookware.
• 18 charges for Lagostina Commercial Clad products.
• 15 charges for Cuisinart Japanese knives.
• 12 charges for Dewalt cordless drills.
• 10 charges for Henckels Aviara knives.

Historic Fine Imposed

On the day of the ruling, Canadian Tire pled guilty to all charges during a brief court appearance. Judge Simon Lavoie of the Quebec Court presided over the case.

Charles Tanguay, spokesperson for the OPC, highlighted the significance of the fine: “This is by far the largest penalty imposed on a retailer after an OPC investigation in 53 years.” The previous record was held by Haiti Air Charter, fined $220,000 in 2005.

Consumer Protection and Future Implications

During the investigation, the OPC found that the advertised prices reflected genuine sales in only a small fraction of cases. The misleading pricing practices took place throughout a six-month verification period across three Montreal locations.

While Canadian Tire was penalized, it appears that the negotiations led to no fines for its franchisees in Quebec, which faced over 150 charges each. They ultimately settled without penalties as part of a deal.

Previous Significant Fines by the OPC

In a brief statement, a spokesperson for Canadian Tire noted, “No customer has been overcharged, and the matter is resolved.” However, the retailer declined further comment.