Competition Bureau Investigation Leads to $1-Million Settlement with Suzy Shier Inc.

OTTAWA, June 13, 2003 — The Competition Bureau has reached a settlement with Suzy Shier Inc., resolving the Bureau’s concerns over the pricing practices of the women’s clothing retailer. The matter has been resolved by way of a Consent Agreement filed today with the Competition Tribunal.

After a thorough investigation, the Bureau found that Suzy Shier had placed price-tags on garments indicating a ‘regular’ and ‘sale’ price when in fact the garments were not sold in any significant quantity or for any reasonable period of time at the ‘regular’ price. The civil Ordinary Selling Price provisions of the Competition Act are designed to ensure that when products are promoted at sale prices, consumers are not misled by reference to inflated regular prices.

"The issue boils down to one question: When is a bargain really a bargain? The Bureau is committed to ensuring that consumers have accurate information regarding the ‘regular price’ of clothing so that they may determine the true value of their savings when deciding to purchase items ‘on sale’," said Raymond Pierce, Deputy Commissioner of Competition. "We will continue to examine the retail sector in order to prevent the use of fictitious ‘regular prices’ as a deceptive sales ploy."

The civil Consent Agreement, filed with the Competition Tribunal, will remain in effect for 10 years. Under the terms of the Agreement, Suzy Shier will:

• ensure that all future regular price representations comply with the Ordinary Selling Price provisions of the Act;
• implement a corporate compliance program designed to ensure the company’s compliance with the Ordinary Selling Price provisions of the Act;
• publish corrective notices in newspapers across Canada; and
• pay an administrative monetary penalty in the amount of $1,000,000.

"The Bureau is extremely pleased with the level of co-operation received from Suzy Shier in this matter, along with the enthusiastic commitment that the company has pledged to its clientele regarding the accuracy of all future savings claims for Suzy Shier apparel," added Mr. Pierce.

The Competition Bureau is an independent law enforcement agency that promotes and maintains fair competition so that all Canadians can benefit from competitive prices, product choice and quality service. It oversees the application of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act.

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
1-800-348-5358