Competition Bureau Investigating Leon's and The Brick for Alleged Deceptive Marketing Practices

Competition Bureau Investigating Leon’s, The Brick for Alleged Deceptive Marketing

The Competition Bureau has obtained a court order in an investigation centering around whether Leon’s Furniture Ltd. and its subsidiary The Brick deceptively marketed their products.

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Investigation Background

The competition watchdog said Wednesday that the ongoing investigation into the Canadian furniture retailers looks at three kinds of marketing practices. The first is sales claims made without specifying the discount amount or using distinct font colors to mislead customers into thinking they are benefiting from a sale.

Deceptive Marketing Practices Investigated

Lack of transparency in sales claims: Sales claims made by Leon’s and The Brick may not be transparent enough, making it difficult for consumers to understand what they are getting.
Misleading font colors: The use of distinct font colors to highlight discounts or promotions without specifying the actual discount amount can create a false impression about the nature of a promotion.
Urgency cues: Countdown clocks or "limited time only" marketing may be used to create a sense of urgency, leading customers to make impulsive purchasing decisions.

Investigation Timeline

The bureau began its investigation on August 6th. The Federal Court order obtained by the watchdog will give it access to new records and written information relevant to the investigation.

Response from Leon’s and The Brick

In a statement, Leon’s and The Brick said that they are committed to complying with all regulatory requirements and are co-operating with the bureau’s investigation. They also stated that they have established long-standing protocols to meet advertising standards and provide excellent value to their customers.

Previous Investigations

The Competition Bureau has made deceptive marketing cases a cornerstone of its work in recent years. Some notable cases include:

Cineplex Inc.: The bureau won a $38.9-million case against the movie theater giant, which it accused of misleading customers with online ticket fees.
SiriusXM Canada, Discount Car & Truck Rentals Ltd., and TicketNetwork: The bureau took action against these companies for allegedly engaging in drip pricing practices.

Conclusion

The investigation into Leon’s and The Brick’s marketing practices highlights the importance of transparency and fairness in business dealings. As the Competition Bureau continues to crack down on deceptive marketing practices, businesses must ensure that they are complying with all regulatory requirements and providing accurate information to their customers.