Misleading Advertising- Grafton Fraser: How did the Consumers Benefit?
" The 10-year Consent Agreement, which is designed to remedy the competitive and consumer impact of the practices, requires Grafton-Fraser to:* pay an administrative monetary penalty in the amount of $1,000,000;
* pay a portion of the costs of the Bureau's inquiry in the amount of $200,000;
* when making reference to regular prices on any in-store signs and advertisements, ensure that all current and future regular price representations comply with the Ordinary Selling Price provisions of the Competition Act;
* implement a comprehensive Corporate Compliance Program designed to ensure conformity with the false or misleading representations and deceptive marketing practices provisions of the Competition Act; and
* display a corrective notice prominently in its retail stores across Canada, on any of the company's Web sites, and in designated newspapers across Canada."
Well, what did the consumers who were ripped off get out of this deal? Apparently nothing. The Competition Bureau got 1 million dollars, with no obligation to pay any of that money to consumers who were deceived. Nice work.
Comments
Valo;
Yes, under the Competition Act, section 36 you can bring a class action for section 52 misleading advertsing.
But, this was not a section 52 conviction. It was a civil conviction, so no class action.
Also, why should the consumer have to sue? Why didn't the Competition Bureau obtain restitution for the consumers?
Posted by: michael webster
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February 14, 2007 9:48 PM
Hey Michael,
There is a way through a class action, do u have ur merchandise purchase receipt indicating the proving fauls rebate??
Posted by: Valo
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February 13, 2007 2:48 PM