Competition Bureau reaches settlement with Leon’s and The Brick in advertising case
News Release
February 20, 2018 – OTTAWA, ON – Competition Bureau
The Competition Bureau worked cooperatively with Leon’s and The Brick to reach an agreement regarding concerns over its advertising of financing plans. This agreement brings an end to the legal proceedings launched by the Bureau.
As part of the settlement, Leon’s and The Brick have agreed to each donate $750,000 worth of home furnishings over two years to charities in Canada.
The companies have also agreed to adhere to the Bureau’s guidance on the proper use of disclaimers in advertising and the disclosure of fees associated with their financing plans.
The Bureau calls on all businesses selling furniture, appliances and electronics, to review their marketing practices, particularly as they relate to financing plans. The Bureau will continue to monitor advertising in this area.
When possible, the Bureau prefers to resolve matters without the use of lengthy and costly litigation.
Quotes
“Consumers expect and deserve truth in advertising. The Bureau works to ensure Canadians can trust advertising claims made by businesses and can be confident in their purchasing decisions. Increased competition in the marketplace provides consumers with competitive prices and more choice.”
Josephine Palumbo,
Deputy Commissioner of Competition
Quick Facts
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Leon’s and The Brick will donate goods to registered charities that help disadvantaged Canadians. The Commissioner of Competition will approve the charities.
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Advertisers looking for guidance on the proper use of disclaimers are invited to read the Bureau’s Disclaimers Demystified, as found in the Bureau’s Deceptive Marketing Practices Digest, Vol 1.
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This settlement is a result of a successful mediation process in the Ontario Superior Court.
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