Competition Tribunal hands down ruling against Sears Canada
By Adnews Staff
The Ottawa-based Competition Tribunal issued a ruling yesterday which found Sears Canada in violation of the Competition Act regarding a number of tire advertisements that ran in November and December 1999. The ads offered tires at sale prices which the tribunal found to be misleading, insofar as the company did not sell enough tires at the quoted regular price for that price to qualify as regular. The effect was to artificially inflate the perceived discount. The Competition Bureau initiated the hearing before the tribunal in 2002. Sears maintains that the regular prices contained in the 1999 advertisements met all legal requirements. According to the Competition Bureau, this is the first decision to be handed down by the tribunal under the ordinary selling price provisions of the Competition Act. The tribunal also upheld the constitutionality of these provisions under the Canadian Charter of Rights and Freedoms. The tribunal will consider imposing a monetary penalty against Sears at a future hearing. The Competition Bureau is a federal agency that oversees and enforces the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act.