Rebates

Consumer rebate promotions include any type of promotion that involves a partial refund or discount from a manufacturer or retailer to consumers upon the purchase of a product. Refunds are normally paid in the form of cash or cheque. There are two types of rebates:

• Instant rebates: Consumers receive the rebate at the time of purchase. It is generally available to anyone who purchases the product without further conditions.
• Mail-in rebates: Consumers apply for the rebate after the purchase, by mail-in application, online or by other means.

Rebates can be beneficial to both consumers and businesses. For consumers, rebates can result in lower effective prices. For businesses, rebates provide a flexible tool that may increase the volume of sales. However, when rebates are not promoted or administered correctly, consumers may ultimately pay more than intended, and competitors can be unfairly disadvantaged. The Competition Bureau has set out to clarify its position on the main issues raised by consumer rebate promotions.

Announcement

Competition Bureau Publishes Guidelines on Consumer Rebate Promotions

OTTAWA, September 21, 2009 — The Competition Bureau today published its Enforcement Guidelines on Consumer Rebate Promotions.

The purpose of the Guidelines is to clarify the Competition Bureau’s approach to interpreting the false or misleading representations provisions of the Competition Act, the Consumer Packaging and Labelling Act and the Textile Labelling Act in the area of consumer rebate promotions.

For more information please consult the Announcement.

More Information

• Enforcement Guidelines: Consumer Rebate Promotions