Canada's Competition Bureau introduced significant amendments to the Competition Act on June 20, 2024, which came into full effect on June 20, 2025. These changes aim to combat deceptive pricing practices, including hidden fees and bogus discount claims, ensuring consumers receive accurate price information.
Key Changes to the Competition Act
1. Strengthened Deceptive Marketing Practices Provisions: Businesses must disclose all mandatory fees upfront in advertisements. Hidden fees, except for government-imposed charges (like sales tax), are now prohibited.
2. Bogus Discount Claims: Companies must prove that their discount claims are genuine. They need to substantiate that the original price was the Ordinary Selling Price (OSP) for a significant time before or after the promotion.
3. Algorithmic Pricing: The Bureau is also researching how algorithmic pricing impacts competition and consumer transparency.
Penalties for Non-Compliance
Failure to comply with the new rules can result in:
Fines: Substantial monetary penalties imposed by the Competition Tribunal or courts.
Corrective Orders: Businesses may be required to take corrective actions, including adjusting their pricing practices or providing consumer refunds.
Criminal Sanctions: Severe violations may lead to criminal charges and higher fines.
Reputational Damage: Non-compliance can harm a business’s reputation, leading to a loss of consumer trust.
What Businesses Should Do
Review Pricing Practices: Ensure transparency in all advertising, with no hidden fees unless required by law.
Substantiate Discount Claims: Keep records of pricing history to validate discount offers.
Prepare for Enforcement: Familiarize yourself with the new rules and make necessary adjustments before June 20, 2025.
You can read more here.