In March 2004, the Competition Bureau received a complaint about a manufacturer of apple-based products promoting a certification seal on the back label of a bottle containing one of its high-end products. The manufacturer also used its Web site to encourage consumers to look for the seal, which it claimed constituted proof that the product was authentic. The company used its own certification seal, potentially leading consumers to believe that an independent organization had certified it. This practice gave it an unfair advantage over other manufacturers of identical products.
According to the provisions of paragraph 74.01(1)(a) of the Competition Act, the conduct of retailers who make a representation to the public that is false or misleading in a material respect is subject to a reviewable matter under the Act.
The Bureau informed the company of the requirements of the Act. The company agreed in writing to cease using the seal and publicizing it on its Web site.
The matter was resolved in June 2004.