Sears deceptive tire marketing case

Sears to Pay Maximum Monetary Penalty & Significant Legal Costs

OTTAWA, April 1, 2005 - The Competition Bureau announced today that Sears Canada Inc. was ordered to pay a $100,000 administrative monetary penalty as well as $387,000 towards the Competition Bureau's legal costs, for a total of $487,000, under the Competition Act's Deceptive Marketing Practices provisions.

This order follows the Competition Tribunal's January decision that Sears breached the Act by making false or misleading representations regarding savings available to consumers when they advertised discounts on certain tires across Canada. The Tribunal's order also prohibits the automotive business division of Sears from engaging in similar representations for a period of 10 years.

Sears agreed to pay the $100,000 administrative monetary penalty and costs in a joint submission to the Competition Tribunal, the maximum penalty that can be imposed on a corporation following an initial finding of reviewable conduct. Parliament is currently considering amendments to the Act which would significantly increase such penalties to better deter similar deceptive marketing practices.

"This kind of deceptive marketing practice hurts consumers, business competitors and competition," said Raymond Pierce, Deputy Commissioner of Competition. "Consumers deserve the truth about prices advertised by retailers."

The Competition Bureau is an independent law enforcement agency. We contribute to the prosperity of Canadians by protecting and promoting competitive markets and enabling informed consumer choice.

To review the Competition Tribunal's decision, please visit their Web site at www.ct-tc.gc.ca.

For media enquiries, please contact:

Maureen McGrath
Senior Communications Advisor
Communications Branch
819-953-8982, or 613-296-2187 (cell)

For general enquiries, please contact:

Information Centre
Competition Bureau
819-997-4282
1-800-348-5358