Difference between revisions of "Consumer Protection from Deceptive and Unconscionable Acts (11:IV)"
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== F. Deceptive Practices Under the Competition Act == | == F. Deceptive Practices Under the Competition Act == | ||
In addition to the protections under the ''BPCPA'', the '' | In addition to the protections under the ''BPCPA'', the ''Competition Act'', RSC 1985, c C-34, proscribes various types of deceptive practices. Some common ones are discussed below: | ||
=== 1. More than One Price Tag (“Double Ticketing”) === | === 1. More than One Price Tag (“Double Ticketing”) === | ||
Shopkeepers often mark goods for sale with more than one price tag. Under the ''Competition Act'', RSC 1985, c C-34, it is an offence for the store to charge anything but the lowest price unless the lower price has been crossed out or the new tag covers the older tag (s 54). The older tag does not have to be unreadable; a line over it or a new tag slightly covering it is fine. However, a cashier may not cross out the older price at the cashier stand. Note that the consumer has no independent right of action. The Competition Bureau, on its website, indicates that “prosecutions under this section have rarely occurred”. | Shopkeepers often mark goods for sale with more than one price tag. Under the ''Competition Act'', RSC 1985, c C-34, it is an offence for the store to charge anything but the lowest price unless the lower price has been crossed out or the new tag covers the older tag (s 54). The older tag does not have to be unreadable; a line over it or a new tag slightly covering it is fine. However, a cashier may not cross out the older price at the cashier stand. Note that the consumer has no independent right of action. The Competition Bureau, on its website, indicates that “prosecutions under this section have rarely occurred”. | ||
=== 2. Advertising a Sale Price === | === 2. Advertising a Sale Price === | ||
If a business advertises a sale price, it must charge that price throughout the sale period (''Competition Act'' s 74.05). However, the advertiser may be relieved of this obligation if (1) the price was advertised in error and if the advertisement indicated prices were subject to error, or (2) the advertisement is immediately followed by a correction. Advertisers who violate this section may be subject to an administrative penalty (s 74.1). | If a business advertises a sale price, it must charge that price throughout the sale period (''Competition Act'' s 74.05). However, the advertiser may be relieved of this obligation if (1) the price was advertised in error and if the advertisement indicated prices were subject to error, or (2) the advertisement is immediately followed by a correction. Advertisers who violate this section may be subject to an administrative penalty (s 74.1). | ||
=== 3. Bait and Switch === | === 3. Bait and Switch === | ||
If a business advertises a sale, it must stock a reasonable quantity of the item (''Competition Act'' s 74.04(2)). The bait and switch tactic occurs when a business advertises an item at a bargain price to attract customers but, having no intention of selling the item, does not adequately stock it. Rather, the business intends to use sale pressure to get customers to buy other, higher-priced items. | If a business advertises a sale, it must stock a reasonable quantity of the item (''Competition Act'' s 74.04(2)). The bait and switch tactic occurs when a business advertises an item at a bargain price to attract customers but, having no intention of selling the item, does not adequately stock it. Rather, the business intends to use sale pressure to get customers to buy other, higher-priced items. | ||
If the business does not have adequate stock of a sale item, it must issue rain cheques. Rain cheques are not required, however, if the advertisement states “while quantities last”. | If the business does not have adequate stock of a sale item, it must issue rain cheques. Rain cheques are not required, however, if the advertisement states “while quantities last”. | ||
Advertisers who violate this section may be subject to an administrative penalty (s 74.1). A business may avoid penalties stemming from bait and switch tactics if it attempted to supply more of an item than it was able to, if demand for the item was greater than expected, or if the advertisement stated that the sale price was good “while supplies last”. | Advertisers who violate this section may be subject to an administrative penalty (s 74.1). A business may avoid penalties stemming from bait and switch tactics if it attempted to supply more of an item than it was able to, if demand for the item was greater than expected, or if the advertisement stated that the sale price was good “while supplies last”. | ||