Retailer Canadian Tire (TSE: CTC.A) has been fined $1.3 million after pleading guilty to 74 counts of violating sections of Quebec’s Consumer Protection Act related to false advertising.
The Toronto-based company agreed to the settlement after initially pleading not guilty to the charges of false advertising.
The case stems from a six-month investigation by the province’s consumer protection office and dates back to 2021.
The Quebec investigators concluded that Canadian Tire falsely claimed sale items were on deep discount by including an artificially inflated regular price in its advertising.
Analysis of the advertisements and sales data showed that the products in question were rarely sold at the so-called “regular price.”
The consumer protection office identified seven products and verified their prices between April and October 2021 in Canadian Tire flyers, on the company’s website, and in three stores.
Under the settlement reached, Canadian Tire admitted liability for five of the products under investigation, including a Cuisinart knife set, Lagostina cookware, and a Dewalt cordless drill.
In a written statement, Canadian Tire said, “No customers were overcharged and the matter is now concluded.”
Canadian Tire must pay the $1.3 million fine within the next 12 months, according to a ruling by a Quebec judge.
The stock of Canadian Tire has risen 3% in the past five years to trade at $179.64 per share.
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