Antitrust Law Daily Wrap Up, ADVERTISING NEWS: Canada Competition Bureau, Michaels of Canada reach consent agreement in price advertising case, (May 8, 2015)

By Michael Menzhuber, J.D., LL.M.

Following a Canada Competition Bureau investigation into price advertising for custom and select ready-made framing, Michaels of Canada, ULC has entered into 10-year consent agreement, the agency announced yesterday. Under that agreement, Michaels will pay a $3.5 million administrative monetary penalty and establish a corporate compliance program. Michaels has also agreed to ensure that its price claims for all products will comply with the ordinary selling price provisions of the Competition Act.

As a result of its investigation, the Bureau had concluded that Michaels did not ensure that its frames were offered for sale in good faith prior to promoting them at substantial discounts. The Competition Act contains provisions that ensure that when advertisers promote products at sale prices, consumers are not enticed by reference to inflated regular prices.

Michaels fully cooperated with the Bureau’s investigation into its custom framing services, which covered the period of January 2011 to December 2014, and with the Bureau’s investigation into its select ready-made frames, which covered the period from January 2013 to December 2014.

News: Advertising