Canadian Tire Fined $1.3 Million for Misleading Discount Pricing Practices in Quebec
Canadian Tire Corporation has been fined nearly $1.3 million plus additional fees after pleading guilty on Friday to falsely advertising prices related to discounts. The penalty stems from an investigation by Quebec's Office de la protection du consommateur (OPC), which found that the retailer violated the Consumer Protection Act by using misleading reference prices on products marketed as being on sale.
Investigation Reveals Systematic Pricing Issues
The OPC conducted a thorough investigation into Canadian Tire's pricing practices between April and October 2021. Consumer protection officials examined the prices of seven specific products across multiple channels:
- Online listings on Canadian Tire's website
- Printed flyers and promotional materials
- Three physical store locations in Montreal
When these products were advertised as being on sale, the discounts were presented as either a percentage reduction or a specific dollar amount less than what was labeled as the "original price." However, the investigation revealed a troubling pattern: these products were rarely, if ever, actually listed at those original reference prices. In physical stores specifically, the products were never available at the advertised original prices.
Specific Products and Legal Consequences
Canadian Tire pleaded guilty for five of the seven products investigated by consumer protection authorities. The items in question included:
- Knife sets manufactured by Henckels and Cuisinart
- Cookware sets from Lagostina and Heritage brands
- A DeWalt power drill
The company faced 74 separate charges filed by the Director of Criminal and Penal Prosecutions, resulting in a substantial fine of $1.28 million plus additional administrative fees. This case represents one of the more significant penalties levied against a major retailer in Quebec for deceptive pricing practices.
Consumer Protection Implications
The OPC had accused Canadian Tire of violating a specific section of Quebec's Consumer Protection Act that explicitly prohibits using misleading reference prices for discounted products. This legal framework is designed to protect consumers from deceptive marketing tactics that create a false sense of urgency or value.
When retailers advertise products as being discounted from an original price that was never genuinely offered, they undermine consumer trust and violate fair trading principles. The investigation findings suggest that Canadian Tire's pricing practices created the illusion of greater savings than were actually available to consumers.
Canadian Tire has not responded to requests for comment regarding the fine or the investigation findings. The case serves as a reminder to all retailers operating in Quebec about the importance of transparent and honest pricing practices, particularly when promoting sales and discounts to consumers.
