Retail Sale Flyers Contain "Incorrect Prices" - Sale Above Advertised Price

In March 2004, the Competition Bureau received an enquiry from a health-food distributor who discovered that the 1.4 million sale flyers they distributed in Canada advertised incorrect prices regarding two products.

Under subsection 74.05 (1) of the Competition Act, it is an offence for retailers to advertise a product for sale and then sell the product for a higher price.

Bureau officials discussed the requirements of the Act with the company. As a result of the discussions, the company provided written and verbal assurance that:

• two independent retailers printed correction notices in the same newspaper that the flyers were distributed in;
• in-store correction notices were posted; and
• a quality control program will be put in place to prevent similar errors in the future.

The issue was resolved in April 2004.

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