Canadian Tire Fined Nearly $1.3 Million for False Advertising
Canadian Tire has been fined nearly $1.3 million for false advertising violations. The company pled guilty to breaching consumer protection laws on 74 different occasions. The fines include penalties which range from $15,625 to $18,150 per offense, culminating in a total of $1,287,550.
Details of the Ruling
The ruling was finalized by Judge Simon Lavoie in a Montreal courthouse. The decision came after the company’s initial not-guilty plea allowed for settlement negotiations. The prosecution, represented by Elise Clavet, indicated that a plea deal was reached.
Investigation Findings
The investigation, conducted by the Office of Consumer Protection (OPC) in 2021, lasted six months. It uncovered instances where Canadian Tire advertised inflated reference prices in their flyers, website, and store displays. According to OPC spokesperson Charles Tanguay, these artificially inflated prices led consumers to believe they were receiving a better discount than was actually offered.
- Seven products were targeted during the investigation.
- Price checks occurred between April and October 2021.
- The probe focused on Canadian Tire’s circulars, website, and three stores in the Montreal area.
- The products involved included knife sets from Henckels and Cuisinart, cookware from Lagostina and Heritage, and a Dewalt cordless drill.
Company Response
In the aftermath, Cindy Thérèse Hoffman, Canadian Tire’s corporate affairs director, issued a statement. She emphasized that the allegations stemmed from a six-month period five years ago. Hoffman insisted that no customers were overcharged and noted that the issue was now resolved.
The company must pay the imposed fine within the next 12 months. This case highlights the importance of transparency in retail pricing and the consequences of misleading advertising practices.
